IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2022-02-2.html
   My bibliography  Save this article

The The Impact of Macroeconomic and Specific Factors of Commercial and Islamic Banks on Profitability Evidence from Egyptian Market

Author

Listed:
  • Mai Ahmed Abdelzaher

    (Faculty of Commerce, Cairo University, Cairo, Egypt.)

Abstract

The purpose of this research paper is to analyze the effectiveness of the economic factors affecting Islamic and commercial banks during the Egyptian financial crisis from 2003 to 2019. A sample was taken from eleven banks registered in the Egyptian financial market, and the data were collected on an annual basis. The variables are as follows: return on assets (ROA); return on equity (ROE); reinvestment rate; size; nonperforming loans; operating leverage; loan growth; inflation rate; GDP; and deposit growth. Several statistical methods were used, such as a normality test, descriptive statistics, a t-test, and a group unit root. A panel data analysis was also applied to compare data from Islamic and commercial banks. The data revealed a negative relationship between the type of bank and ROA and ROE as well as a positive relationshipbetween the global financial crisis and the banks ROE and ROE.

Suggested Citation

  • Mai Ahmed Abdelzaher, 2022. "The The Impact of Macroeconomic and Specific Factors of Commercial and Islamic Banks on Profitability Evidence from Egyptian Market," International Journal of Economics and Financial Issues, Econjournals, vol. 12(2), pages 16-25, March.
    • Handle: RePEc:eco:journ1:2022-02-2
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/12776/6648
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/12776
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. S. M. Rifat Hassan* & Riyashad Ahmed, 2019. "Internal Determinants of Islamic Bank Profitability: Evidence from Bangladesh," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 5(7), pages 171-176, 07-2019.
    2. Robin, Iftekhar & Salim, Ruhul & Bloch, Harry, 2018. "Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 43-54.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yoshino, Naoyuki & Taghizadeh-Hesary, Farhad, 2019. "Optimal credit guarantee ratio for small and medium-sized enterprises’ financing: Evidence from Asia," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 342-356.
    2. Roukia Bouhider, 2021. "Econometric study of the effect of deposits on Islamic Banks profitability: Evidence from Malaysia," Economics Bulletin, AccessEcon, vol. 41(3), pages 1292-1302.
    3. Chen, Zhonglu & Mirza, Nawazish & Huang, Lei & Umar, Muhammad, 2022. "Green Banking—Can Financial Institutions support green recovery?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 389-395.
    4. Muhammad Rabiu Danlami & Muhamad Abduh & Lutfi Abdul Razak, 2022. "CAMELS, risk-sharing financing, institutional quality and stability of Islamic banks: evidence from 6 OIC countries," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 13(8), pages 1155-1175, June.
    5. Sreemanta Sarkar & Debdas Rakshit, 2023. "Factors Influencing the Performance of Commercial Banks: A Dynamic Panel Study on India," FIIB Business Review, , vol. 12(1), pages 85-99, March.
    6. Taslima Akther & Mushfiqur Rahman & Md. Mufidur Rahman, 2023. "Factors influencing commercial bank profitability in Bangladesh: a panel data approach," Future Business Journal, Springer, vol. 9(1), pages 1-20, December.
    7. Md. Ahsan Ullah & Subrata Deb Nath & Munna Rani Biswas, 2020. "Impact of bank-specific internal factors on the profitability of state-owned commercial banks in Bangladesh," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 11(2), pages 24-32, May.
    8. Khalfaoui Hamdi & Guenichi Hassen, 2021. "Economic policy uncertainty effect on credit risk, lending decisions and banking performance: evidence from Tunisian listed banks," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 38(2), pages 287-303, February.
    9. Pejman Ebrahimi & Maria Fekete-Farkas & Parisa Bouzari & Róbert Magda, 2021. "Financial Performance of Iranian Banks from 2013 to 2019: A Panel Data Approach," JRFM, MDPI, vol. 14(6), pages 1-15, June.
    10. Ajaan Rahman Khan & Chinmoy Das Gupta & Md. Ali Ashraf, 2021. "Relationship Between Banking Performance and Financial Distress: A Study on Banks of Bangladesh," Issues in Economics and Business, Macrothink Institute, vol. 7(1), pages 15-25, June.
    11. Dilesha Nawadali Rathnayake & Yang Bai & Pierre Axel Louembé & Li Qi, 2022. "Interest Rate Liberalization and Commercial Bank Performance: New Evidence From Chinese A-Share Banks," SAGE Open, , vol. 12(2), pages 21582440221, May.
    12. Eissa A. Al-Homaidi & Mosab I. Tabash & Anwar Ahmad & David McMillan, 2020. "The profitability of islamic banks and voluntary disclosure: empirical insights from Yemen," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1778406-177, January.
    13. Vikram Jeet & Parvesh Kumar Aspal, 2020. "The Determinant of Financial Performance of Indian Public Sector Banks- A Panel Data Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 285-295, October.
    14. Ahmed Nourrein Ahmed Mennawi & Ahmed Ali Ahmed, 2020. "Influential Factors on Profitability of Islamic Banks: Evidence from Sudan," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(6), pages 1-1, June.
    15. Petra Jílková & Jana Kotěšovcová, 2022. "Determinanty výnosnosti evropského bankovního systému v letech 2012-2019 [Determinants of European Bank Profitability in 2012-2019]," Politická ekonomie, Prague University of Economics and Business, vol. 2022(5), pages 552-573.
    16. Eissa A. Al-Homaidi & Mosab I. Tabash & Najib H. S. Farhan & Faozi A. Almaqtari, 2018. "Bank-specific and macro-economic determinants of profitability of Indian commercial banks: A panel data approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1548072-154, January.
    17. Hussain A. Bekhet & Jad Alkareem Alhyari & Nora Yusma Mohamed Yusoff, 2020. "Highlighting Determinants of Financial Performance of the Jordanian Financial Sector: Panel Data Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(6), pages 237-252, December.

    More about this item

    Keywords

    macro economic factors; specific factors; commercial and Islamic banks; financial crisis;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2022-02-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.