Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid.

This paper investigate the determinant of profitability of Islamic banks from the MENA region and how Global Financial Crisis (GFC) impacts on their performance. The study covers 117 banks for periods of 2003 to 2011. To examine the determinant of Islamic banking profitability (ROA), we apply a bala...

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Main Author: Mongid, Abdul
Format: Article
Language:English
Published: Universiti Teknologi Mara Selangor 2016
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/32783/
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author Mongid, Abdul
author_facet Mongid, Abdul
author_sort Mongid, Abdul
building UiTM Institutional Repository
collection Online Access
description This paper investigate the determinant of profitability of Islamic banks from the MENA region and how Global Financial Crisis (GFC) impacts on their performance. The study covers 117 banks for periods of 2003 to 2011. To examine the determinant of Islamic banking profitability (ROA), we apply a balanced and dynamic panel data regression model. We conclude that the profitability of Islamic banks in the MENA countries is determined positively by asset size, equity to total asset, liquidity risk and negatively by capital adequacy ratio, innovation and global financial crisis. Positive and significant of asset size underlines the viability of economies of scale and scope. Foremost, Dummy for crisis is negative and significant indicating Islamic banks are not immune to the crisis. Innovation should be performed with caution, especially on Off-balancesheet activities.
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spelling uitm-327832020-07-27T01:28:37Z https://ir.uitm.edu.my/id/eprint/32783/ Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid. jeeir Mongid, Abdul HJ Public Finance Finance, Islamic This paper investigate the determinant of profitability of Islamic banks from the MENA region and how Global Financial Crisis (GFC) impacts on their performance. The study covers 117 banks for periods of 2003 to 2011. To examine the determinant of Islamic banking profitability (ROA), we apply a balanced and dynamic panel data regression model. We conclude that the profitability of Islamic banks in the MENA countries is determined positively by asset size, equity to total asset, liquidity risk and negatively by capital adequacy ratio, innovation and global financial crisis. Positive and significant of asset size underlines the viability of economies of scale and scope. Foremost, Dummy for crisis is negative and significant indicating Islamic banks are not immune to the crisis. Innovation should be performed with caution, especially on Off-balancesheet activities. Universiti Teknologi Mara Selangor 2016-01 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/32783/1/32783.pdf Mongid, Abdul (2016) Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid. (2016) Journal of Emerging Economies and Islamic Research (JEEIR) <https://ir.uitm.edu.my/view/publication/Journal_of_Emerging_Economies_and_Islamic_Research_=28JEEIR=29.html>, 4 (1). pp. 1-16. ISSN 2289-2559 https://journal.uitm.edu.my/ojs/index.php/JEEIR/
spellingShingle HJ Public Finance
Finance, Islamic
Mongid, Abdul
Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid.
title Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid.
title_full Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid.
title_fullStr Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid.
title_full_unstemmed Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid.
title_short Global financial crisis (GFC) and Islamic banks profitability: evidence from MENA Countries /Abdul Mongid.
title_sort global financial crisis (gfc) and islamic banks profitability: evidence from mena countries /abdul mongid.
topic HJ Public Finance
Finance, Islamic
url https://ir.uitm.edu.my/id/eprint/32783/
https://ir.uitm.edu.my/id/eprint/32783/