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Firm-Specific Determinants of Islamic Banks’ NIM: A Panel Analysis

Author

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  • S. M. Rifat Hassan

    (Department of Business Administration, European University of Bangladesh)

  • Tarina Kamal

    (Department of Business Administration, European University of Bangladesh)

  • Arijita Roy

    (Department of Business Administration, European University of Bangladesh)

  • Masum Billah Patowary

    (Department of Economics, European University of Bangladesh)

Abstract

This study attempts to identify the company-specific factors that affect the net investment margin (NIM) in the Islamic banking industry of Bangladesh. Research period covers 2010 to 2022. The data type for the study is unbalanced panel data. The paper evaluates the link between the NIM and six possible exogenous variables. According to the Hausman test, random effects model is applied to analyze the dataset. As per our estimations, ROA, ROE, and liquidity have a positive and significant relationship with NIM. On the other hand, our findings indicate a strong negative relationship between CRAR and NIM. Moreover, there is a minor but favorable relationship between the bank size and NIM.

Suggested Citation

  • S. M. Rifat Hassan & Tarina Kamal & Arijita Roy & Masum Billah Patowary, 2024. "Firm-Specific Determinants of Islamic Banks’ NIM: A Panel Analysis," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(6), pages 503-509, June.
    • Handle: RePEc:bjc:journl:v:11:y:2024:i:6:p:503-509
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    References listed on IDEAS

    as
    1. Ozili, Peterson K & Uadiale, Olayinka, 2017. "Ownership Concentration and Bank Profitability," MPRA Paper 102571, University Library of Munich, Germany.
    2. Fadzlan Sufian & Muzafar Shah Habibullah, 2009. "Determinants of bank profitability in a developing economy: Empirical evidence from Bangladesh," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 10(3), pages 207-217, April.
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