Investigating the Parameters Influencing Islamic Banks Financial Performance: Evidence from Five Southeast Asian Countries

Saleh, Abdulmajid Obaid Hasan and Al-Shaghdari, Fahd and Tahani Ali Hakami, Tahani Ali Hakami and Barjoyai Bardai, Barjoyai Bardai (2021) Investigating the Parameters Influencing Islamic Banks Financial Performance: Evidence from Five Southeast Asian Countries. In: EuroMid Academy of Business & Technology (EMABT)‎ IKiTELL OSB MAHALLESI GIYIM SANATKARLARI , 3A BLOK-SK. 3A BLOK - Apt. NO 3 A/602 BASAKSEHIR-ISTANBUL, 1043, ISTANBUL, ZOOM (ONLINE) . NO 3 A/602 BASAKSEHIR-ISTANBUL, 1043, ISTANBUL. (Unpublished)

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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.

Item Type:	Conference or Workshop Item (Plenary Papers)
Uncontrolled Keywords:	Islamic Banks, Profitability, and GDP Growth Rate, Economic Growth, Southeast Asia
Subjects:	BPH Islamic Economics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Abdulmajid Obaid Hasan Saleh
Date Deposited:	22 Dec 2021 12:14
Last Modified:	22 Dec 2021 15:11
URI:	http://irep.iium.edu.my/id/eprint/94152

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