Open AccessThe Impact of Macroeconomic and Specific Factors of Commercial and Islamic Banks on Profitability Evidence from Egyptian Market
Author(s) -
Mai Ahmed Abdelzaher
Publication year - 2022
Publication title -
international journal of economics and financial issues
Language(s) - English
Resource type - Journals
ISSN - 2146-4138
DOI - 10.32479/ijefi.12776
Subject(s) - return on equity , return on assets , non performing loan , profitability index , loan , financial system , panel data , descriptive statistics , economics , leverage (statistics) , capital adequacy ratio , interest rate , business , monetary economics , econometrics , statistics , finance , mathematics , profit (economics) , microeconomics
The purpose of this research paper is to analyze the effectiveness of the economic factors affecting Islamic and commercial banks during the Egyptian financial crisis from 2003 to 2019. A sample was taken from eleven banks registered in the Egyptian financial market, and the data were collected on an annual basis. The variables are as follows: return on assets (ROA); return on equity (ROE); reinvestment rate; size; nonperforming loans; operating leverage; loan growth; inflation rate; GDP; and deposit growth. Several statistical methods were used, such as a normality test, descriptive statistics, a t-test, and a group unit root. A panel data analysis was also applied to compare data from Islamic and commercial banks. The data revealed a negative relationship between the type of bank and ROA and ROE as well as a positive relationshipbetween the global financial crisis and the banks’ ROE and ROE.