PROFITABILITY OF ISLAMIC BANKS: A PANEL DATA ANALYSIS

Keywords: Profitability, Islamic banks, Panel data, Middle East, North Africa.

Abstract

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.

Author Biographies

Amine Bakkeri, University of Sfax

Faculty of Economics and Management of Sfax, University of Sfax, Tunisia

Abdelhakim Ben Ali, University of Jendouba

Faculty of Law, Economics and Management of Jendouba, University of Jendouba, Tunisia

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Published
2020-10-14
How to Cite
Bakkeri, A., & Ali, A. B. (2020). PROFITABILITY OF ISLAMIC BANKS: A PANEL DATA ANALYSIS. Indian Journal of Finance and Banking, 4(3), 26-38. https://doi.org/10.46281/ijfb.v4i3.811
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper