Macro and Micro Determinants of Islamic and Conventional Banks Performance and Financial Crises in GCC Countries

A Comparative Study of Efficiency between Conventional and Islamic Banks in Indonesia

“…Banks offer the fund mostly to real sector and economic cycle turns positively leads to prosperous society. Inflation reveals negative effect and significant on ROA in the Islamic banks and it proves the empirical result of Mirzaei andMirzaei (2011) andZeitun (2012). Athanasoglou et al (2005) explains bank profitability will be affected by inflation depending on whether banks' wages and other operating expenses increase at a faster rate than inflation.…”

“…It indicates that capital adequacy and bank size have a positive and significant effect, while total deposits to total assets has negative and significant effect on ROA and ROE. Zeitun (2012) finds the determinants of Islamic and Conventional Banks performance in GCC countries using panel data analysis. The finding reveals that IB size has a negative and insignificant effect on ROA, whereas the CB size has a negative and significant effect on ROA.…”

Determinants of Bank Profitability in Western European Countries Evidence from System GMM Estimates

“…A negative relationship found in the study of Demirguc-Kunt et al (2004). Others researchers found a positive relationship between profitability and growth in real GDP (Demirguc-Kunt & Huizinga, 1999;Bikker, & Hu, 2002;Goddard et al, 2004;Albertazzi & Gambacorta, 2009;Flamini et al, 2009;Davydenko, 2011;Dietrich & Wanzenried, 2011;Zeitun, 2012). An improvement in the economic situation increases the loan request by households and businesses and improves the financial conditions of borrowers, with positive effects on the profitability of traditional financial intermediation (Albertazzi & Gambacorta, 2009).…”

Performance and Profitability of Islamic Banks in Saudi Arabia: An Empirical Analysis

“…Another study conducted by Zeitun (2012) investigates some influential factors (foreign ownership, banks-specific variables, and macroeconomic factors) on Islamic and conventional banks in Gulf Cooperation Council (GCC) countries, during the period 2002-2009, using a cross-sectional time-series (panel data). The results show that bank's equity is important in explaining and increasing conventional banks profitability only.…”

“…We took proxy to determine the size as natural logarithm of total assets (LNTA) similar to many studies in corporate finance like Zeitun (2012); Almazari (2014); Afzal and Mirza (2012); Naceur and Goaied (2005) etc.…”