Investigating the parameters influencing Islamic banks financial performance: evidence from five Southeast Asian countries
View expanded cover International Conference on Business and Technology ICBT 2021: Innovation of Businesses, and Digitalization during Covid-19 Pandemic pp 29–50Cite as Investigating the Parameters Influencing Islamic Banks Financial Performance: Evidence from Five Southeast Asian Countries...
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Main Authors: | , , , |
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Format: | Conference or Workshop Item |
Language: | English English |
Published: |
Springer, Cham
2023
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Online Access: | http://irep.iium.edu.my/98815/7/98815_Investigating%20the%20parameters%20influencing%20Islamic%20banks%20financial%20performance.pdf http://irep.iium.edu.my/98815/13/98815_Investigating%20the%20parameters%20influencing%20Islamic%20banks%20financial%20performance_SCOPUS.pdf http://irep.iium.edu.my/98815/ https://link.springer.com/chapter/10.1007/978-3-031-08090-6_2 |
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Institution: | Universiti Islam Antarabangsa Malaysia |
Language: | English English |
Summary: | View expanded cover
International Conference on Business and Technology
ICBT 2021: Innovation of Businesses, and Digitalization during Covid-19 Pandemic pp 29–50Cite as
Investigating the Parameters Influencing Islamic Banks Financial Performance: Evidence from Five Southeast Asian Countries
Fahd Al-Shaghdari, Tahani Ali Hakami, Barjoyai Bardai & Abdulmajid Obaid Hasan Saleh
Conference paper
First Online: 08 July 2022
7 Accesses
Part of the Lecture Notes in Networks and Systems book series (LNNS,volume 488)
Abstract
This paper investigated the parameters that influence Islamic Banks’ financial performance in Malaysia, Indonesia, Thailand, Brunei, and Singapore. The past decades have witnessed the positive expansion of Islamic banking in Southeast Asia but a discernible drop in their profitability and assets growth may denote poor performance. This requires investigation. This quantitative study examined the factors that may influence Islamic banks’ financial performance, and found Assets Quality, Liquidity, Debt Funding and Equity funding as the significant parameters in determining Islamic banks’ financial performance among the countries examined. Also, GDP Growth Rate and interest rate were the only external parameters with positive influence on Islamic banks’ financial performance. Notably, Inflation and Tax rate were not significant in determining Islamic Banks’ financial performance. Accordingly, management should strengthen the practices and implementations of the profit loss sharing (PLS) based instruments among the examined Islamic banks. Hence, disparities could be decreased while the economic opportunities could be improved, particularly those that could greatly contribute to the capital build-up and the creation of economic growth. |
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