Investigation of Jordanian Islamic and conventional banks’ stability and profitability determinants : evidence from the recent financial crisis
Other Title(s)
تقصي استقرار و محددات ربحية المصارف الأردنية الإسلامية و التجارية : خلال فترة الأزمة المالية الراهنة
Dissertant
Yusufi, Iman Abd al-Wahhab Muhammad
Thesis advisor
Comitee Members
al-Tarawinah, Midhat Ibrahim
al-Dayyat, Rasha Abd Allah
al-Shawawrah, Faysal Mahmud Muslim
University
Mutah University
Faculty
Faculty of Business
Department
Department of Business Administration and Marketing
University Country
Jordan
Degree
Master
Degree Date
2011
English Abstract
-This study is concerned with examining the stability and profitability determinants of Jordanian Islamic and conventional banks.
Specifically, it had two main objectives: First, to test and compare the stability of these banks pre and post the financial crisis, using the daily returns for the period 02/01/2005 to 26/01/2010.
Second, to investigate the profitability (ROA and ROE) determinants of these banks' (capital, size, liquidity, deposits growth, efficiency and risk) as internal determinants and the financial crisis (dummy) as an external one during the time period 1998-2009.
The study covered a sample of ten conventional and two Islamic banks.
The conditional variance (volatility) of returns was used to measure stability.
The GARCH, E-GARCH and GJR-GARCH models were used to estimate volatility due to their ability to take into account the leverage effect.
The results of this study showed that Islamic bank were more stable than conventional banks, which may due to their links with the real economy.
The profitability determinants were tested using the pooled least square method with fixed effect.
The results indicated that the most important factors that affected Islamic bank‘s profitability were: capital, risk and size.
However, the most significant factors that affected conventional banks profitability were capital and efficiency.
Finally, the results revealed that the financial crisis had a significant effect on conventional banks‘ profitability, but it had no effect on the profitability of Islamic banks.
The study recommended that Islamic banks in Jordan need to improve the branch network throughout the country, and conventional banks must open Islamic branches, to benefit from this worthy system and to diversify their risks.
Main Subjects
Topics
- Banks
- Islamic jurisprudence
- Islam
- Financing
- Profits
- Comparative analysis
- Jordan
- Religious aspects
- Banking
- Islamic Banks
- Fiscal stability
No. of Pages
114
Table of Contents
Table of contents.
Abstract.
Chapter one : Introduction.
Chapter two : Theoretical framework and previous studies.
Chapter three : Design and methodology.
Chapter four : Empirical findings and analysis.
Chapter Five : conclusion and recommendations.
References.
American Psychological Association (APA)
Yusufi, Iman Abd al-Wahhab Muhammad. (2011). Investigation of Jordanian Islamic and conventional banks’ stability and profitability determinants : evidence from the recent financial crisis. (Master's theses Theses and Dissertations Master). Mutah University, Jordan
https://search.emarefa.net/detail/BIM-304873
Modern Language Association (MLA)
Yusufi, Iman Abd al-Wahhab Muhammad. Investigation of Jordanian Islamic and conventional banks’ stability and profitability determinants : evidence from the recent financial crisis. (Master's theses Theses and Dissertations Master). Mutah University. (2011).
https://search.emarefa.net/detail/BIM-304873
American Medical Association (AMA)
Yusufi, Iman Abd al-Wahhab Muhammad. (2011). Investigation of Jordanian Islamic and conventional banks’ stability and profitability determinants : evidence from the recent financial crisis. (Master's theses Theses and Dissertations Master). Mutah University, Jordan
https://search.emarefa.net/detail/BIM-304873
Language
English
Data Type
Arab Theses
Record ID
BIM-304873
