Impact of macroeconomic variables on Islamic Banks profitability
Joint Authors
Yaqub, Hakimah
Mamur, Salamah
Gil, Muhammad Uthman Tariq
Ali, Qaysar Muslim Abd
Source
The International Journal of Business Ethics and Governance
Issue
Vol. 1, Issue 2 (31 May. 2018), pp.20-35, 16 p.
Publisher
EuroMid Academy of Business and Technology
Publication Date
2018-05-31
Country of Publication
Turkey
No. of Pages
16
Main Subjects
Abstract EN
The main objective of this study is to investigate the impact of macroeconomic variables on Islamic banks’ profitability in Brunei.
The sample includes Bank Islam Brunei Darussalam (BIBD) from 2012 to 2016.
Profitability was measured by Return on Assets (ROA) and Return on Equity (ROE) while macroeconomic variables included were GDP growth rate, inflation, interest rate, exchange rate, oil prices, competition, and money supply.
Data was obtained from DEPD, AMBD, and IMF annual reports.
The fixed effects panel regression technique was adopted to measure the impact of each variable on Islamic banks’ profitability using Stata 15.
The findings revealed that GDP growth rate, inflation, exchange rate, oil prices and money supply have a significant and a positive impact on profitability.
While oil prices, GDP and inflation are the most significant variables, exchange rate and money supply are the least significant determinants of profitability.
The study therefore recommends the regulators and policy makers to discover alternative ways to rejuvenate the economic and the financial system.
Islamic bankers may revamp their marketing strategies to reduce the impact of macroeconomic variables.
This study has vigorously contributed to the existing literature of Islamic banks’ profitability, in the context of a single country analysis, particularly in Brunei.
American Psychological Association (APA)
Ali, Qaysar Muslim Abd& Mamur, Salamah& Yaqub, Hakimah& Gil, Muhammad Uthman Tariq. 2018. Impact of macroeconomic variables on Islamic Banks profitability. The International Journal of Business Ethics and Governance،Vol. 1, no. 2, pp.20-35.
https://search.emarefa.net/detail/BIM-1259577
Modern Language Association (MLA)
Ali, Qaysar Muslim Abd…[et al.]. Impact of macroeconomic variables on Islamic Banks profitability. The International Journal of Business Ethics and Governance Vol. 1, no. 2 (2018), pp.20-35.
https://search.emarefa.net/detail/BIM-1259577
American Medical Association (AMA)
Ali, Qaysar Muslim Abd& Mamur, Salamah& Yaqub, Hakimah& Gil, Muhammad Uthman Tariq. Impact of macroeconomic variables on Islamic Banks profitability. The International Journal of Business Ethics and Governance. 2018. Vol. 1, no. 2, pp.20-35.
https://search.emarefa.net/detail/BIM-1259577
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 32-35
Record ID
BIM-1259577