The profitability of Islamic banking in Sudan

Elgadi, Entissar; Yu, Ellen Pei yi

doi:10.1504/ijmp.2018.092859

Cited by 5 publications

(6 citation statements)

References 27 publications

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“…Banks usually maintain significant portion from their profits to enhance the equity position and reinvestment. This result is consistent with similar other studies conducted by Bashir (2003), Hassan and Bashir (2005), Dietricha and Wanzenried (2009), Oino (2015), Aliyu and Yusof (2016), Elgadi and Yu (2018), and Jamel and Mansour (2018).…”

Section: Coefficients Correlationsupporting

confidence: 93%

“…banks are keen to manage their operational costs as it will directly impact positively to profitability. This result confirmed by the studies of Dietricha and Wanzenried (2009), Buchory (2015), Oino (2015), Rashwan and Ehab (2016), Mehta and Bhavani (2017), Elgadi and Yu (2018), and Hassan and Ahmed (2019).…”

Section: Coefficients Correlationsupporting

confidence: 69%

“…Concerning Islamic banks in Sudn, Elgadi and Yu (2018) investigated the profitability determinants in a sample of 27 banks from 2005 and 2013. The results showed that ownership, capitalization (Total Equity to Total Assets) and asset utilization (Operating Income to Total Assets) have a positive and significant impact on profitability ijef.ccsenet.org International Journal of Economics and Finance Vol.…”

Section: Studies Of Country Casesmentioning

confidence: 99%

“…The ROA used by Dietricha and Wanzenried (2009), Buchory (2015), and Hassan and Ahmed (2019), while the ROE applied in the study that conducted by Muda et al (2013). Rashwan and Ehab (2016), and Elgadi and Yu (2018). Moreover, the ratios of ROA& NIM used by Tan and Floros (2012).…”

Section: Profitability Measuresmentioning

confidence: 99%

“…The higher EQTA ratio leads to low insolvency profile and more profitability. This measure has been used as independent variable in many studies by Bashir (2003) Dietricha and Wanzenried (2009), Muda et al (2013), Elgadi and Yu (2018), Jamel and Mansour (2018), Hassan and Bashir (2005), Oino (2015) and Aliyu and Yusof (2016).…”

Section: Bank Capitalization (Equity To Assets -Eqta)mentioning

confidence: 99%

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Influential Factors on Profitability of Islamic Banks: Evidence from Sudan

Mennawi¹,

Ahmed²

2020

IJEF

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Profitability of Islamic banks has a significant effect on banks current and future decisions that do not only associate with shareholders and management, but also for various types of stakeholders. Despite that, scholars are not yet in agreement on common determinants of profitability in banking industry. This study aims to investigate the effect of bank-specific and industry characteristics along with macroeconomic variable (the inflation) on the profitability of a sample of 10 Islamic banks in Sudan. The study applied descriptive statistics, Persons’ correlation and multiple regression analysis on secondary data in order to determine the relationships and degree of significant of the independent variables to profitability. The profitability has been measured by two models; as return on assets (ROA) and net profit margin (NMP). The results reveal that bank capitalization (EQTA), operational cost efficiency (OCOI), investment in short-term securities (SECA) and inflation (INF) variables are significantly affecting the profitability of Islamic banks in Sudan. In contrary, the deposit-size of the bank (as market share) is not a significant determinant of banks’ profitability. Furthermore, the results indicate that quality of credit loan (NPL) is highly significant to NPM, while it is insignificant to ROA.

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Section: Coefficients Correlationsupporting

confidence: 93%

Section: Coefficients Correlationsupporting

confidence: 69%

Section: Studies Of Country Casesmentioning

confidence: 99%

Section: Profitability Measuresmentioning

confidence: 99%

Section: Bank Capitalization (Equity To Assets -Eqta)mentioning

confidence: 99%

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Influential Factors on Profitability of Islamic Banks: Evidence from Sudan

Mennawi¹,

Ahmed²

2020

IJEF

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Improving Islamic bank performance through agency cost and dual board governance

Kismawadi

2023

JIABR

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Purpose This study aims to examine the impact of agency cost, Islamic board characteristics and corporate governance on the performance of Islamic institutions. Design/methodology/approach Based on the selected criteria, 92 Islamic banks (IBs) from 20 countries were selected for further research. The authors used generalized method moments (GMM) estimation method. The agency cost and Shariah board characteristics are the explanatory variables. The author uses the age of the bank and the size of the bank for variable control. Findings Empirical results indicate that first, agency costs represented by cast/total assets negatively affect IBs’ return on equity and net income. As agency costs rise, IBs’ financial performance declines. Second, Shariah supervisory board (SSB) size and board independence affect IB performance. The study found that SSB size positively affects IB performance. Research limitations/implications This research contributes to the literature on IBs in different countries, which policymakers and practitioners can use to improve agency cost functions and Shariah board characteristics. Second, this analysis shows that IBs require specific attention for agency charges, given their operations and business structures. This study contributes to agency theory, which requires Islamic banking information and practices. Finally, the author has aided regulators and IBs by identifying the sources of agency cost practices that can be resolved. The other bank governance contribution is twofold. First, the author studied dual board governance in IBs (SSB and ordinary boards of directors). Second, the author examines how SSB and traditional board governance affect IB performance. This research focuses on banks listed on stock exchanges in the 20 countries analysed. Practical implications The research has policy and practical implications for central banks and IBs. By outlining appropriate regulatory guidelines and reporting systems, regulatory authorities can ensure Sharia compliance and protect the independence of IB Shariah department officers. Regulators and relevant stakeholders must ensure Sharia compliance, audits, inspections, reporting and accurate disclosure for IBs. Originality/value This paper offers original contributions to professionals in the field of IBs and stakeholders investigating the relationship between agency costs, governance of IBs, characteristics of Islamic supervisory boards and the performance of IBs.

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Katilim Bankaciliği Faali̇yetleri̇ni̇n Reel İkti̇sadi̇ Faali̇yetlere Katki Açisindan Değerlendi̇ri̇lmesi̇

HARUNOĞULLARI¹

2023

Muhasebe Ve Finans İncelemeleri Dergisi

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İktisadi çalışmalarda bankacılık faaliyetlerinin önemli bir yeri bulunmaktadır. 20. yy. sonu itibariyle başlayan finansal krizler konvansiyonel finans sistemine olan güveni küresel ölçekte azaltmış ve finansal paradigma ile ilgili yeni arayışları başlatmıştır. 1950’lerden itibaren gelişen İslami finansal kuruluşların küresel krizlerde gösterdiği nispeten daha istikrarlı tablo İslami finansa olan ilgiyi artırmıştır. Türkiye’de katılım bankacılığı olarak bilinen bu tür finansal kuruluşlar gün geçtikçe bankacılık sektöründeki yerlerini pekiştirmektedir. Bu makalede İslami prensiplere göre çalışan katılım bankalarının bankacılık sektöründeki performansları analiz edilecek ve bankacılık faaliyetleri reel ekonomiye katkıları açısından değerlendirilecektir. Çalışmada, BDDK, TKBB ve IFSB kurumlarından elde edilen veriler karşılaştırılarak değerlendirilmiş ve finansal analiz yapılmıştır. Katılım bankaları reel iktisadi faaliyetlerde aracı olma konusunda önemli tecrübe ve birikime sahip kurumsal yapılardır. Ancak katılım bankalarının İslami prensiplere uyarak bankacılık faaliyetlerini yürütme konusunda başarılı bir tablo ortaya koydukları, bununla birlikte reel iktisadi faaliyetleri destekleme konusundaki potansiyeline ulaşamadığı ifade edilebilir.

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The profitability of Islamic banking in Sudan

Cited by 5 publications

References 27 publications

Influential Factors on Profitability of Islamic Banks: Evidence from Sudan

Influential Factors on Profitability of Islamic Banks: Evidence from Sudan

Improving Islamic bank performance through agency cost and dual board governance

Katilim Bankaciliği Faali̇yetleri̇ni̇n Reel İkti̇sadi̇ Faali̇yetlere Katki Açisindan Değerlendi̇ri̇lmesi̇

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