The Determinants of Islamic and Conventional Banks Profitability in the GCC Region

Bassam Omar Ali Jaara, Mohammad A. AL-Dahiyat and Ismail AL-Takryty

International Journal of Financial Research, 2021, vol. 12, issue 3, 78-91

Abstract: The purpose of this study is to examine the factors affecting the profitability levels of commercial banks whether Islamic and non-Islamic over the period 2000-2018, to suggest ways to enhance the Islamic and non-Islamic banks profitability levels¡¯ in the GCC countries. This research employed Bivariate analysis and panel regression in the investigation process. The study employed return on assets ratio as a proxy for banks profitability. The study found out that conventional banks are more efficient than Islamic banks in terms of profitability levels. There are substantial variances between both Islamic and conventional banks in terms of the determinants of banks' profitability. It is found that 89% of the Islamic bank¡¯s profitability and 85% of conventional banks profitability influenced by bank size, market to book value, capital ratio, cash to assets, gross domestic product GDP, GDP growth, and inflation.

Keywords: profitability levels; Islamic banks; conventional banks; microeconomic and macroeconomic variables (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/19894/12203 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/19894 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:12:y:2021:i:3:p:78-91

DOI: 10.5430/ijfr.v12n3p78

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().