Profitability drivers of Islamic banks : a global panel investigation
Author
Ahmad, Raniya Salim Husam al-Din
Source
Scientific Journal for Economic and Commerce
Issue
Vol. 49, Issue 2 (31 Jul. 2019), pp.849-881, 33 p.
Publisher
Ain Shams University Faculty of Commerce
Publication Date
2019-07-31
Country of Publication
Egypt
No. of Pages
33
Main Subjects
Topics
Abstract EN
This paper analyzes the profitability of 108 Islamic banks operating across 35 countries over the period 2005-2015 using the GMM estimator technique.
We investigate the global panel of Islamic banks under various economic conditions.
We study how bank specific factors and macroeconomic conditions impact bank profitability, measured by the return on average assets (ROAA), the return on average equity (ROAE), and the net interest margin (NIM), under different banking environments.
The paper investigates the factors that affect the profitability of Islamic banks.
The results reveal that bank size, credit risk, CIR, and deposit growth rates have a negative impact on profitability, while bank age, capital adequacy, and liquidity risk positively affect profitability.
Moreover, our analysis show that macroeconomic factors measured by GDP growth rates and inflation have a positive impact on profitability.
These findings suggest that, based on the current financial reporting system, Islamic banks resembles conventional banks in terms of profitability determinants.
JEL classification: G20; G21; Z12
American Psychological Association (APA)
Ahmad, Raniya Salim Husam al-Din. 2019. Profitability drivers of Islamic banks : a global panel investigation. Scientific Journal for Economic and Commerce،Vol. 49, no. 2, pp.849-881.
https://search.emarefa.net/detail/BIM-1000110
Modern Language Association (MLA)
Ahmad, Raniya Salim Husam al-Din. Profitability drivers of Islamic banks : a global panel investigation. Scientific Journal for Economic and Commerce Vol. 49, no. 2 (Jul. 2019), pp.849-881.
https://search.emarefa.net/detail/BIM-1000110
American Medical Association (AMA)
Ahmad, Raniya Salim Husam al-Din. Profitability drivers of Islamic banks : a global panel investigation. Scientific Journal for Economic and Commerce. 2019. Vol. 49, no. 2, pp.849-881.
https://search.emarefa.net/detail/BIM-1000110
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1000110