Morteza Ezzat; Lotfali Agheli; Nafiseh Keshavarz Saji
Volume 15, Issue 58 , October 2015, , Pages 159-189
Abstract
Evaluating performance of the Islamic financial and economic institutions and identifying their mechanisms can help to have a better policy-making in banking system. In this regard, different variables can be considered to measure the profitability of banks. Among these, return on assets as one of factors ...
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Evaluating performance of the Islamic financial and economic institutions and identifying their mechanisms can help to have a better policy-making in banking system. In this regard, different variables can be considered to measure the profitability of banks. Among these, return on assets as one of factors affecting profitability of banks is influenced by two categories of internal and external variables. This research aims at identifying the factors affecting the return on assets in Islamic banks. Data are collected from 29 Islamic banks in 10 Islamic countries over the period of 2004-2011 and are analyzed by using panel data regression in linear models. The results indicate that among 9 variables included in the model, there is a strong, positive, and significant relationship between degree of investment and return on assets. Moreover, there is a strong, negative, and significant relationship between expenses management ratio and return on assets.
Somayeh Khatibi; Ali Asghar Salem
Volume 15, Issue 57 , July 2015, , Pages 141-164
Abstract
After fifty years from establishment of first islamic bank, nowadays islamic banking growth and its successful competition with conventional banks is clearly observed. In our paper, we measure the cost efficiency of islamic and conventional banks. Our sample contains 7 countries: Jordan, United Arab ...
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After fifty years from establishment of first islamic bank, nowadays islamic banking growth and its successful competition with conventional banks is clearly observed. In our paper, we measure the cost efficiency of islamic and conventional banks. Our sample contains 7 countries: Jordan, United Arab Emirates, Indonesia, Bahrain, Saudi Arabia, Turkey and Qatar, because they have both types of banking and data for both types of banks in selective country is accessible. By using Stochastic Frontier Approach over the period of 1999-2006, this study shows that, on average, the efficiency of an islamic bank (0.902) is higher than that of conventional bank (0.849). This fact can be the reason of growing islamic banking sector and the cause of other countries’ incentive to establish islamic banks. The comparisons between countries show that in United Arab Emirates, Indonesia, Bahrain and Saudi Arabia, the efficiency of islamic banks is higher than that of conventional ones but in Jordan, Turkey and Qatar, conventional banks are more efficient..
