dc.creator | Jarbou, Samah Ibrahim | es |
dc.creator | Irimia Diéguez, Ana Isabel | es |
dc.creator | Prieto Rodríguez, Manuela | es |
dc.date.accessioned | 2024-08-30T11:51:09Z | |
dc.date.available | 2024-08-30T11:51:09Z | |
dc.date.issued | 2024 | |
dc.identifier.citation | Jarbou, S.I., Irimia Diéguez, A.I. y Prieto Rodríguez, M. (2024). Financial performance of Islamic and conventional banks in MENA region: a GLS approach. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-11-2023-0380. | |
dc.identifier.issn | 1759-0825 | es |
dc.identifier.issn | 1759-0817 | es |
dc.identifier.uri | https://hdl.handle.net/11441/162135 | |
dc.description.abstract | Purpose – The purpose of this study is to assess and contrast the impact of various factors, including both
bank-specific and macroeconomic factors, on the financial performance of Islamic and conventional banks
(I&CB) in countries with a dual banking system.
Design/methodology/approach – A general least square model is applied to a large data set of 103
I&CB operating in the Middle East and North Africa (MENA) region, comprising unbalanced annual panel
data spanning the period from 2015 to 2020. The financial performance index (FPI) derived from capital
adequacy, asset quality, management efficiency, earnings, and liquidity (CAMEL) ratios is used as the
dependent variable.
Findings – Key factors, such as overhead expenses, gross domestic product (GDP) and retained earnings,
exert a substantial influence on the financial performance of both I&CB. Moreover, the findings suggest that
certain parameters, including deposits, inflation and cellular banking usage, significantly impact on the
financial performance of conventional banks, while bank size specifically affects the financial performance of
Islamic banks.
Research limitations/implications – While this study provides valuable insights, it is essential to
acknowledge its limitations. The research focuses on a specific region (MENA) and may not be universally
applicable to other geographical areas or banking systems. The study’s findings are based on historical data
and might not fully reflect current or future market conditions. Additionally, the choice of variables and
methodology may introduce bias or limitations, as with any empirical study. The theoretical implications of
the research paper lie in the distinct ethical principles that constitute the foundation of Islamic finance. The
ethical opposition to Riba is poised to have extensive implications, influencing market stability, commercial
and economic impact and contributing to responsible banking practices within the Islamic banking sector.
The study suggests that adherence to these sacred principles not only aligns with ethical considerations but
also fosters social responsibility within Islamic banking institutions. This holds significance for broader
societal and economic impacts, as responsible banking practices contribute to sustainable and equitable
economic development.
Practical implications – The study underscores the significance of efficient overhead cost management
for conventional banks, particularly in the context of a rapidly evolving digital banking environment. The call for adaptation and innovation in operational strategies aligns with the broader principles of efficiency and
effectiveness emphasized in Islamic finance.
Social implications – In essence, the theoretical and practical implications of the study surpass the
narrow focus on financial performance, resonating with the broader societal and economic landscape within
the Islamic banking sector. The integration of ethical principles not only reinforces the unique identity of
Islamic finance but also positions it as a model for responsible and sustainable banking practices in the
MENA region and beyond.
Originality/value – CAMEL ratios are used to build an FPI to evaluate bank performance, providing a
more precise and comprehensive assessment compared to traditional return ratios like return on assets or
return on equity. Second, the authors conduct a thorough analysis covering factors across bank-specific,
financial and macroeconomic dimensions. Thus, the study stands out by not only examining bank-specific
factors but also by considering external factors such as GDP, interest rates and the development of the
financial sector. The focus on the MENA region allows us to offer generalizable findings, highlighting
distinctions between I&CB and considering a period with boomyears (2015–2019) and a recession year (2020). | es |
dc.format | application/pdf | es |
dc.format.extent | 25 | es |
dc.language.iso | eng | es |
dc.publisher | Emerald Publishing Limited | es |
dc.relation.ispartof | Journal of Islamic Accounting and Business Research. | |
dc.rights | Atribución 4.0 Internacional | * |
dc.rights.uri | http://creativecommons.org/licenses/by/4.0/ | * |
dc.subject | Financial performance | es |
dc.subject | Islamic bank | es |
dc.subject | Conventional bank | es |
dc.subject | CAMEL ratios | es |
dc.title | Financial performance of Islamic and conventional banks in MENA region: a GLS approach | es |
dc.type | info:eu-repo/semantics/article | es |
dc.type.version | info:eu-repo/semantics/publishedVersion | es |
dc.rights.accessRights | info:eu-repo/semantics/openAccess | es |
dc.contributor.affiliation | Universidad de Sevilla. Departamento de Economía Financiera y Dirección de Operaciones | es |
dc.relation.publisherversion | https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2023-0380/full/html | es |
dc.identifier.doi | 10.1108/JIABR-11-2023-0380 | es |
dc.journaltitle | Journal of Islamic Accounting and Business Research | es |