Published October 6, 2026
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DETERMINANTS OF ISLAMIC BANKS' FINANCIAL PERFORMANCE AND RISK: A PANEL DATA ANALYSIS OF 14 COUNTRIES (2013–2025)
Authors/Creators
- 1. Westminster International University in Tashkent Editorial administrative officer
Description
Islamic banks have grown into systemically important institutions
across the GCC, South Asia, and beyond, yet whether their profitability and risk
profiles are driven by a shared set of factors — or diverge in ways that create a risk
return trade-off — remains underexplored. This study investigates the bank-specific
and macroeconomic determinants of Islamic banking sector performance (ROA) and
risk (Z-score, non-performing financing ratio) using quarterly panel data from 14
countries sourced from the IFSB PSIFI Data Portal , spanning 2013Q4–2025Q4 (581
585 observations). Pooled OLS, Fixed Effects, and Random Effects estimators were
applied, with the Hausman test guiding model selection, and macroeconomic controls
(GDP growth, inflation) added from World Bank WDI data. The results show that
operating efficiency and liquidity are the most robust drivers of profitability, while
capital adequacy is the dominant driver of stability.
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24. Abduvalieva N.M. - DETERMINANTS OF ISLAMIC BANKS’ FINANCIAL PERFORMANCE.pdf
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- https://infocom.uz/magazine/27
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- Active
References
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