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Impact of E-Banking on the Islamic bank profitability in Sub-Saharan Africa: What are the financial determinants?

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  • Adalessossi, Kokou

Abstract

Employing the system GMM and FGLS approach, we investigate the impact of the use of electronic banking services and determinants of profitability of Islamic banks(ISBs) in Sub-Saharan Africa (SSA). Less competitiveness in the banking industry is noticed.Interestingly, using electronic banking services significantly increases profitability in SSA on the whole. While it reinforces bank profit in East Africa it reduces the latter in West Africa. We also notice that investment deposits based on the Sharia principle decrease banks’ profit in SSA. Furthermore, the results show that ISBs are more focused on non-Profit and Loss Sharing (PLS) transactions than on PLS transactions.

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  • Adalessossi, Kokou, 2023. "Impact of E-Banking on the Islamic bank profitability in Sub-Saharan Africa: What are the financial determinants?," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005603
    DOI: 10.1016/j.frl.2023.104188
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