Determinants of Islamic bank profitability in the MENA region

Karim Ben Khediri and Hichem Ben-Khedhiri

International Journal of Monetary Economics and Finance, 2009, vol. 2, issue 3/4, 409-426

Abstract: This paper examines the determinants of Islamic bank profitability in the MENA region, during the years 1999-2006. We estimate several specifications to study the impact of bank-specific and country-specific variables, including macro-economic conditions, market structure and institutional development, on bank profitability. The results provide evidence suggesting that capitalisation and management efficiency enhance bank profitability. The results also indicate that bank profitability is positively associated with, economic growth, inflation and bank concentration. We also show that Islamic bank profitability is higher in countries with better socio-economic conditions and better legal systems.

Keywords: Islamic banking; MENA region; performance evaluation; bank profitability; Islamic finance; capitalisation; management efficiency; Middle East; North Africa. (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmefi:v:2:y:2009:i:3/4:p:409-426

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