A comparison of banks performance determinants between conventional and Islamic banks: an empirical evidence from Jordan
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[1] Universidad de Sevilla
Universidad de Sevilla
Sevilla, España
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- Localización: Leveraging new business technology for a sustainable economic recovery: XXXVI Congreso Anual AEDEM: 1 al 3 de junio de 2022, Pozuelo de Alarcón, Madrid / coord. por Abel Monfort, Susana Fernández Lores, 2022, ISBN 978-84-19480-06-4, pág. 66
- Idioma: español
- Texto completo no disponible (Saber más ...)
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Resumen
We empirically examine the bank-specific, financial, and macroeconomic determinants of performance of Islamic and conventional banks in Jordan. The financial performance index (FPI) was constructed based on CAMEL ratios and then ran the computed index on the said determinants. We have used unbalanced annual panel data covering the period 2011-2019. The GLS regression results show that GDP, operating efficiency, reserves, and overheads are significantly affect banks' performance. In contrast, deposits and sises show significant and negative relationship with bank performance. The finding also suggests that central banks should motivate both Islamic and conventional banks to increase their Market capitalization, which ultimately would affect bank performance positively
