What is it about?

This study analyzes the banks’ internal factors to study the determinants of profitability and assets growth.

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Why is it important?

This is the first inferential study analyzing determinants of profitability in Islamic banks using panel data for the period 2007-12.

Perspectives

The results are consistent with theory and other studies conducted in other countries. We find that net markup income is positively associated with expense and assets and negatively with NPLs (Non Performing Loans). Finance to deposits ratio is positively associated with NPL to net income, net markup income and expense to net markup income. Our results suggest that assets growth is positively related with profitability ratios and is also positively influenced by deposits growth.

Dr Salman Ahmed Shaikh
Islamic Economics Project

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This page is a summary of: Determinants of Islamic Banking Growth in Pakistan, Journal of Islamic Economics Banking and Finance, January 2014, Al Manhal FZ, LLC,
DOI: 10.12816/0029046.
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