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Competition And Other External Determinants Of The Profitability Of Islamic Banks

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  • HARON, SUDIN

    (Department of Accounting and Financial Management,)

Abstract

In most of the Muslim countries, Islamic banks are operating side by side with conventional banks. This study examines the effects of competition and some other external factors on the profitability of Islamic banks. The banks chosen for this study were divided into two groups according to the market in which they operate. The study finds that Islamic banks in competitive market earned more than those which operate in a monopolistic market. Evidence was also found to support the hypothesis that the profit-loss sharing principle practiced by Islamic banks is beneficial to both depositors and the banks.

Suggested Citation

  • Haron, Sudin, 1996. "Competition And Other External Determinants Of The Profitability Of Islamic Banks," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 4, pages 49-64.
    • Handle: RePEc:ris:isecst:0101
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    Cited by:

    1. Rima Turk Ariss, 2010. "Competitive conditions in Islamic and conventional banking: A global perspective," Review of Financial Economics, John Wiley & Sons, vol. 19(3), pages 101-108, August.
    2. Jean-Michel Sahut & Mehdi Mili & Maroua Ben Krir & Frédéric Teulon, 2015. "Factors of Competitiveness of Islamic Banks in the New Financial Order," Working Papers 2015-625, Department of Research, Ipag Business School.
    3. Jean-Yves Moisseron & Bruno-Laurent Moschetto & Frédéric Teulon, 2015. "Islamic Finance: A Review Of The Literature," Post-Print hal-04194802, HAL.
    4. Abdullah Yusri AL Khatib, 2021. "Determinants of Dividends for Real Estate Sector in Jordan," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(12), pages 177-177, July.
    5. Jean Yves MOISSERON & Bruno Laurent MOSCHETTO & Frédéric TEULON, 2014. "Islamic finance: a review of the literature," Working Papers 2014-93, Department of Research, Ipag Business School.
    6. Huma Nawaz, 2019. "An investigation into factors that determine the growth rate in the Islamic banking and finance," Future Business Journal, Springer, vol. 5(1), pages 1-15, December.
    7. Sakarya, Burchan, 2016. "Financial Stability of Islamic (Participation) Banks in Turkey," MPRA Paper 69451, University Library of Munich, Germany.
    8. Handayani, Yuniorita Indah & Fadah, Isti & Utami, Elok Sri & Sumani,, 2020. "The Moderating Role of Corporate Social Responsibility in Determining Islamic Bank Margin," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(1), pages 97-110.
    9. repec:ipg:wpaper:2014-093 is not listed on IDEAS

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