A comparison of banks performance determinants between conventional and Islamic banksan empirical evidence from Jordan

  1. Samah Jarbou 1
  2. Ana Irimia-Diéguez 1
  3. Manuela Prieto-Rodríguez 1
  1. 1 Universidad de Sevilla
    info

    Universidad de Sevilla

    Sevilla, España

    ROR https://ror.org/03yxnpp24

Libro:
Leveraging new business technology for a sustainable economic recovery: XXXVI Congreso Anual AEDEM: 1 al 3 de junio de 2022, Pozuelo de Alarcón, Madrid
  1. Abel Monfort (coord.)
  2. 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