Global Financial Crisis (GFC) And Islamic Banks Profitability: Evidence From MENA Countries

Mongid, Abdul

doi:10.24191/jeeir.v4i1.9074

Cited by 10 publications

(11 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Equity refers to the shareholders' equity (or owners' equity for privately held banks). Alharbi (2017), Mongid (2016) and found that the equity of Islamic banking had a positive and significant impact on profitability of Islamic banks under study. Liquidity is the ability of a bank to have sufficient liquid assets i.e., cash to pay the bills and obligations on time.…”

Section: Internal Factorsmentioning

confidence: 89%

“…Senan, Noaman, Aldalaien & Al-Homaidi (2021), Abduh & Baharoon (2016 and revealed that the assets size had a significant relationship with profitability of Islamic banks under study. Alharbi (2017), Mongid (2016), Eljelly (2013), Masood & Ashraf (2012), Idris et al (2011) and Karim, Sami & Hichem (2010) pointed out that the bank size had a positive and significant impact on profitability of Islamic banks under study. Al-Homaidi, International Journal of Islamic Economics and Finance Studies, 2022/1 Tabash & Ahmad (2020), Asadullah (2017) and Zeitun (2012) indicated that the total assets had a negative and significant impact on profitability of Islamic banks under study.…”

Section: Internal Factorsmentioning

confidence: 96%

See 1 more Smart Citation

Profitability of Islamic Banking – A Study of Select Islamic Banks from Asia

MALEK

Rao

2022

International Journal of Islamic Economics and Finance Studies

View full text Add to dashboard Cite

Recently, the trend of Islamic banking profitability has attracted much attention in the literature of banks' profitability. This study attempts to measure the impact of internal and external (macroeconomic) factors on the profitability of Islamic banking using data of select Islamic banks from Asia (Bahrain, Iran, Turkey and Malaysia) in the period of 2011-2020.Panel data method is used in the empirical analysis. Return on Average Assets (ROAA) and Return on Average Equity (ROAE) are used as proxies of profitability in this study. Descriptive statistics, correlation and regression analysis are applied to the variables under study.Illustratively, there is a positive correlation between Liquidity Ratio (LQR) and Operating Expenses Ratio (OER). In addition, there is a negative correlation between Bank Age (BA) and Inflation Growth Rate (IGR). According to the test findings, Bank Size (BS) and Equity Ratio (ER) have statistically positive significant impact on profitability; while Bank Age (BA) has statistically negative significant impact on profitability of select Islamic banks. Inferentially, it is revealed that external (macroeconomic) variables viz., GDP Growth Rate (GDPGR), Inflation Growth Rate (IGR) and Type of Banking System (TBS) have non-significant impact on profitability of select Islamic banks.

show abstract

Section: Internal Factorsmentioning

confidence: 89%

Section: Internal Factorsmentioning

confidence: 96%

Profitability of Islamic Banking – A Study of Select Islamic Banks from Asia

MALEK

Rao

2022

International Journal of Islamic Economics and Finance Studies

View full text Add to dashboard Cite

show abstract

“…In addition, the authors believe that the impact of crisis was only a temporary shock rather than a structural break. Mongid (2016) investigated the determinants of profitability of Islamic banks from MENA region and how the global financial crisis impacted their performance. His study covers 117 banks for the period of 2003 to 2011.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of the Global Financial Crisis on the Profitability of Islamic Banks in UAE

Ibrahim

2019

IJFR

View full text Add to dashboard Cite

This paper empirically analyzes the profitability of the four Islamic banks operating in the UAE during the financial period between 2004 and 2009 using three profitability indicators, return on total income, return on assets and return on equity. The researcher uses a variety of techniques, equality of means, coefficient of variation and Anova analysis to assess the effect of the financial crisis on the performance of the four specified banks. The findings show that although the financial crisis began in the 3rd quarter of 2007, its impact on the profitability of Islamic banks was most profound in 2008 and 2009 where there was a notable decline in all analyzed financial indicators. Moreover, the three indicators held a higher variability rate during the crisis years spanning 2008 to 2009 in stark contrast with the pre-crisis rates of the period spanning 2004 to 2007. Anova analysis across the four banks show significant differences between the mean of most indicators, suggesting varying performance under the adverse conditions present during the recession.

show abstract

“…Regarding liquidity risk and profitability relation; increase in the current ratio and the investment ratio of the available funds have positive effects on the profitability (Malik and Aqeel, 2017) (Mongid, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Liquidity Risk Management in Islamic Banking: Comparative Analysis with SUR Methodology for Turkey

Küçükçolak

2019

JEDEP

View full text Add to dashboard Cite

Participating banks, emerged as a complementary element in the Turkish financial system since mid-1980s, are continuously increasing their value added to the Turkish banking sector. Therefore, determining whether participation banks and conventional banks differ in liquidity structure and liquidity risk management makes it possible to assess future growth performance of these banks. The aim of this study is to determine factors effecting liquidity risk in Turkish Islamic banking sector. Method used for this purpose is the Seemingly Unrelated Regression (SUR). The result of study indicates that liquidity risk is significantly affected from credit base and funds collected and; increase in them will increase the liquidity risk. Based on our findings, it is possible to estimate factors effecting participation banks liquidity structure and will be a significant input for asset-liability management. This is noteworthy to have robust Islamic banking sector in Turkey and to manage risk they face accurately.

show abstract

Global Financial Crisis (GFC) And Islamic Banks Profitability: Evidence From MENA Countries

Cited by 10 publications

References 0 publications

Profitability of Islamic Banking – A Study of Select Islamic Banks from Asia

Profitability of Islamic Banking – A Study of Select Islamic Banks from Asia

The Effect of the Global Financial Crisis on the Profitability of Islamic Banks in UAE

Liquidity Risk Management in Islamic Banking: Comparative Analysis with SUR Methodology for Turkey

Contact Info

Product

Resources

About