A comparison of banks performance determinants between conventional and Islamic banksan empirical evidence from Jordan
- Samah Jarbou 1
- Ana Irimia-Diéguez 1
- Manuela Prieto-Rodríguez 1
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1
Universidad de Sevilla
info
- Abel Monfort (coord.)
- Susana Fernández-Lores (coord.)
Editorial: Escuela Superior de Gestión Comercial y Marketing, ESIC
ISBN: 978-84-19480-06-4
Año de publicación: 2022
Páginas: 66
Congreso: Asociación Europea de Dirección y Economía de Empresa. Congreso Anual. AEDEM (36. 2022. Pozuelo de Alarcón (Madrid))
Tipo: Aportación congreso
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