Risk and profitability measures in Islamic banks : the case of two Sudanese banks
Author
Source
Issue
Vol. 6, Issue 2 (31 May. 1999), pp.1-24, 24 p.
Publisher
Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)
Publication Date
1999-05-31
Country of Publication
Saudi Arabia
No. of Pages
24
Main Subjects
Economy and Commerce
Financial and Accounting Sciences
Abstract EN
The paper examines the effects of scale (total assets) on the performance of Islamic banks.
The analysis is done in the context of agency and financial intermediation theories.
Using data from two Sudanese banks, our empirical investigation provides limited support to the theoretical predictions.
The relationships between size and profitability measures are statistically significant, indicating that Islamic banks become more profitable as they grow in size.
However, the negative relationship between size and the ratio of equity to capital implies that the larger bank is systematically highly levered.
Moreover, the negative and statistically significant relationship between size and the risk index indicates that large size is economically efficient.
The negative and slightly significant relationship between size and market valuation contradicts the predictions of theory.
American Psychological Association (APA)
Bashir, Abd al-Hamid M.. 1999. Risk and profitability measures in Islamic banks : the case of two Sudanese banks. Islamic Economic Studies،Vol. 6, no. 2, pp.1-24.
https://search.emarefa.net/detail/BIM-154320
Modern Language Association (MLA)
Bashir, Abd al-Hamid M.. Risk and profitability measures in Islamic banks : the case of two Sudanese banks. Islamic Economic Studies Vol. 6, no. 2 (May. 1999), pp.1-24.
https://search.emarefa.net/detail/BIM-154320
American Medical Association (AMA)
Bashir, Abd al-Hamid M.. Risk and profitability measures in Islamic banks : the case of two Sudanese banks. Islamic Economic Studies. 1999. Vol. 6, no. 2, pp.1-24.
https://search.emarefa.net/detail/BIM-154320
Data Type
Journal Articles
Language
English
Notes
Includes appendix : p. 23-24
Record ID
BIM-154320