Open AccessPROFITABILITY OF ISLAMIC BANKS: A PANEL DATA ANALYSIS
Author(s) -
Amine Bakkeri,
Abdelhakim Ben Malik
Publication year - 2020
Publication title -
indian journal of finance and banking
Language(s) - English
Resource type - Journals
eISSN - 2574-609X
pISSN - 2574-6081
DOI - 10.46281/ijfb.v4i3.811
Subject(s) - profitability index , panel data , capitalization , market liquidity , islam , business , diversification (marketing strategy) , economics , accounting , monetary economics , finance , econometrics , marketing , linguistics , philosophy , theology
This article aims to examine the impact of internal and external factors on the profitability of 30 Islamic banks operating in the Middle East and North Africa over a period from 2005 till 2018. We use the OLS method according to Panel data. Empirical results indicate that the quality of management, liquidity, and capitalization, quality of services, the presence of women and the competence of staff are significant determinants of profitability. The other determinants including diversification, size and inflation have no significant effect on the Islamic banks' profitability.
JEL Classification Codes: G21, G24, C33, D02.