An Empirical Investigation of the Profitability of Islamic Banks in Bangladesh

An Empirical Investigation of the Profitability of Islamic Banks in Bangladesh

Abu Hanifa Md. Noman

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α International Islamic University Chittagong

An Empirical Investigation of the Profitability of Islamic Banks in Bangladesh

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Abstract

The paper aims at investigating the effect of bank specific and macroeconomic determinants on profitability of seven Islamic banks in Bangladesh during 2003 to 2013. The study uses pool regression model and system GMM in the investigation process. The study considers ROAA, ROAE and NIM while ROAA is found more preferred profitability indicator for the Islamic banks in Bangladesh. The study reveals a robust negative effect of credit risk, loan ratio, cost efficiency and capitalization on profitability while robust positive effect bank size on profitability of the Islamic banks in Bangladesh. The study further finds that implementation of Basel II accord does not increase profitability of the Islamic bank in Bangladesh. The study suggests some significant policy recommendation in order to improve the profitability of the Islamic banks in Bangladesh.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Abu Hanifa Md. Noman. 2015. \u201cAn Empirical Investigation of the Profitability of Islamic Banks in Bangladesh\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C4): .

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GJMBR Volume 15 Issue C4
Pg. 11- 22

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-C Classification: JEL Code: G21

Submission ReceivedFebruary 7, 2015
Peer Review Double Blind
Handling Editor
Accepted February 28, 2015
Published March 15, 2015

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v1.2

Issue date

May 8, 2015

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Article Matrices

Total Score: 101

Country: Bangladesh

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Abu Hanifa Md. Noman (PhD/Dr. count: 0)

View Count (all-time): 166

Total Views (Real + Logic): 4420

Total Downloads (simulated): 2196

Publish Date: 2015 05, Fri

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Total Views: 4420

Total Downloads: 2196

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