Determinants of Islamic banks’ performances
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Pooled OLS | ||||
| Variables | FE | RE | GLS | |
| Overheads (OVHD) | −0.410 (0.405) | −1.083 (0.718) | −1.428* (0.764) | −0.749** (0.300) |
| Bank size (SZE) | 0.414 (0.420) | −3.304 (2.064) | 0.0145 (0.845) | 0.881*** (0.271) |
| Retained earnings (RSRV) | 0.108** (0.0486) | 0.232*** (0.0783) | 0.190*** (0.0549) | 0.124*** (0.0353) |
| Deposit (DPST) | −0.00744** (0.00310) | −0.00652** (0.00281) | −0.00339 (0.00227) | −0.0121 (0.00833) |
| Operating efficiency (OE) | −1.010 (0.648) | 1.812 (1.291) | −0.159 (1.096) | −0.550 (0.511) |
| GDP (const.) | 0.606 (0.400) | −10.82** (4.660) | 0.424 (0.753) | 0.581* (0.308) |
| Inflation (IN) | −0.185*** (0.0653) | −0.0503 (0.0665) | 0.0100 (0.0493) | −0.0107 (0.0376) |
| Cellular (CE) | −0.00300 (0.0112) | −0.000124 (0.0196) | 0.0154 (0.0129) | −0.00338 (0.00532) |
| Constant | −22.94** (10.05) | 328.4** (133.2) | −18.39 (20.63) | −31.68*** (6.908) |
| Observations | 149 | 149 | 149 | 149 |
| R-squared | 0.245 | 0.157 | ||
| Number of banks | 25 | 25 | 25 | |
| (1) | (2) | (3) | (4) | |
|---|---|---|---|---|
| Pooled OLS | ||||
| Variables | FE | RE | GLS | |
| Overheads (OVHD) | −0.410 (0.405) | −1.083 (0.718) | −1.428 | −0.749 |
| Bank size (SZE) | 0.414 (0.420) | −3.304 (2.064) | 0.0145 (0.845) | 0.881 |
| Retained earnings (RSRV) | 0.108 | 0.232 | 0.190 | 0.124 |
| Deposit (DPST) | −0.00744 | −0.00652 | −0.00339 (0.00227) | −0.0121 (0.00833) |
| Operating efficiency (OE) | −1.010 (0.648) | 1.812 (1.291) | −0.159 (1.096) | −0.550 (0.511) |
| GDP (const.) | 0.606 (0.400) | −10.82 | 0.424 (0.753) | 0.581 |
| Inflation (IN) | −0.185 | −0.0503 (0.0665) | 0.0100 (0.0493) | −0.0107 (0.0376) |
| Cellular (CE) | −0.00300 (0.0112) | −0.000124 (0.0196) | 0.0154 (0.0129) | −0.00338 (0.00532) |
| Constant | −22.94 | 328.4 | −18.39 (20.63) | −31.68 |
| Observations | 149 | 149 | 149 | 149 |
| 0.245 | 0.157 | |||
| Number of banks | 25 | 25 | 25 | |
: Robust standard errors in parentheses;
***p < 0.01, **p < 0.05 and *p < 0.1.
The table displays the results of a study that investigated the financial performance of Islamic banks in the MENA region using four different estimation methods: pooled OLS, panel effects, fixed effects and generalized least squares (GLS). The variables examined in this study include Overheads (OVHD), Bank size (SZE), Retained earnings (RSRV), Deposits (DPST), Operating efficiency (OE), GDP (const.), Inflation (IN) and Cellular (CE)
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