Table 5

Estimation with NIM and ROE

Islamic banks conventional banks
NIMROENIMROE
Lag NIM0.637*** (0.000) 0.371*** (0.000) 
Lag ROE–0.368*** (0.000)–0.123*** (0.000)
DIV0.0003* (0.062)0.08* (0.052)0.089*** (0.000)1.836*** (0.000)
CAPSTR0.0005*** (0.000)0.161*** (0.000)0.013*** (0.000)0.969*** (0.000)
DIV*CAPSTR0.0006*** (0.000)0.044*** (0.000)0.004*** (0.000)0.533*** (0.000)
Size−0.0006 (0.387)0.858*** (0.000)−0.008*** (0.000)1.91*** (0.000)
CR−0.0002*** (0.002)−0.153*** (0.000)−0.002*** (0.000)−0.243*** (0.000)
LR−0.087*** (0.000)−3.862 (0.335)−0.067*** (0.000)−3.374** (0.027)
CE−0.0073*** (0.000)−0.0071*** (0.000)0.002*** (0.000)−0.279*** (0.000)
ICR0.0005*** (0.000)0.0009* (0.093)0.0002*** (0.000)0.001*** (0.000)
Covid-19−0.003*** (0.000)−0.788*** (0.000)−0.008*** (0.000)−0.786*** (0.000)
INF−0.005 (0.450)−1.859** (0.033)−0.152*** (0.000)−4.961*** (0.000)
GDP0.0004*** (0.001)0.187*** (0.000)0.004*** (0.000)0.495*** (0.000)
Const−0.006 (0.635)1.749 (0.583)0.11*** (0.000)−1.262* (0.064)
AR(2)−1.011.101.66−1.16
(0.314)(0.271)(0.096)(0.245)
Hansen test24.6626.6651.4550.94
(0.698)(0.797)(0.205)(0.219)

Note(s): () indicate p-value. ***, **, * denote 1%, 5% and 10% significance levels, respectively

Source(s): Table created by authors
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