Socioeconomic development and its effect on performance of Islamic banks: dynamic panel approaches
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Islamic banks are highly incorporated with social issues because of their rules and regulations. Profit not only depends on its own return and investment but also on trust, moral issues which may be more related to banking profitability. To test these gaps, this chapter attempts to investigate the socioeconomic factors along with bank-specific factors of global Islamic banks using dynamic GMM and Quantile regression. The dataset used in this study involves 55 full-fledged Islamic Banks from 24 countries across the globe. The results suggest that Return on Assets (ROA) is significantly positive to bank-specific factors such as credit risk has and statistically negative to cost-to-income ratio. Available in physical copy and e-book (Call Number: HG 187.4 M174)
Return on Assets (ROA) , Socioeconomic factors , Credit risk , Dynamic GMM , Quantile regression
Chowdhury, Mohammad Ashraful Ferdous, Haque, Md. Mahmudul, Alhabshi, Syed Othman & Mohammed Masih, Abul Mansur. (2016). Socioeconomic development and its effect on performance of Islamic banks: dynamic panel approaches. In Muhamed Zulkhibri, Abdul Ghafar Ismail & Sutan Emir Hidayat (Eds.), Macroprudential regulation and policy for the Islamic financial industry: theory and applications (pp. 229-243). Switzerland: Springer International Publishing.
Springer International Publishing