Investigating the parameters influencing Islamic banks financial performance: evidence from five Southeast Asian countries

• Main Authors: Fahd Al-Shaghdari, Fahd Al-Shaghdari, Tahani Ali Hakami, Tahani Ali Hakami, Barjoyai Bardai, Barjoyai Bardai, Saleh, Abdulmajid Obaid Hasan
• Format: Conference or Workshop Item
• Language: English; English
• Published: Springer, Cham 2023
• Subjects: BPC175 Islam and engineering. Sustainable engineering. Sustainable building; BPH Islamic Economics
• 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
• Institution: Universiti Islam Antarabangsa Malaysia

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.