Definition of variables
| Ratios | Definitions |
|---|---|
| Profitability | |
| ROA | Return on assets = net income/total assets |
| ROE | Return on equity = net income/stockholders' equity |
| Liquidity | |
| CTA | Cash to assets = cash/total assets |
| CTD | Cash to deposits = cash/total customer deposits |
| Credit risk | |
| LLR | Loans loss reserves to gross loans |
| NPL | Non-performing loans to gross loans |
| LTA | Loans to assets = loans/total assets |
| LTD | Loans to deposits = loans/total customer deposits |
| Regulatory risk | |
| CAP | Capital adequacy ratio |
| Insolvency risk | |
| DTA | Deposits to assets = deposits/total assets |
| Asset structure | |
| FAA | Fixed assets to assets = fixed assets/total assets |
| OBSIA | Off-balance sheet items to assets = off-balance sheet items/total assets |
| Dummies | |
| IB | Dummy variable equal to 1 if the bank is Islamic, 0 otherwise (i.e. Conventional banks (CB)) |
| D2011 | Dummy variable equal to 1 if year 2011 |
| D2008 | Dummy variable equal to 1 if year 2008 |
| Bank characteristics | |
| Size | Log(total asset) |
| Market share | Percentage of comparison between Islamic banks total asset and banks |
| Ratios | Definitions |
|---|---|
| ROA | Return on assets = net income/total assets |
| ROE | Return on equity = net income/stockholders' equity |
| CTA | Cash to assets = cash/total assets |
| CTD | Cash to deposits = cash/total customer deposits |
| LLR | Loans loss reserves to gross loans |
| NPL | Non-performing loans to gross loans |
| LTA | Loans to assets = loans/total assets |
| LTD | Loans to deposits = loans/total customer deposits |
| CAP | Capital adequacy ratio |
| DTA | Deposits to assets = deposits/total assets |
| FAA | Fixed assets to assets = fixed assets/total assets |
| OBSIA | Off-balance sheet items to assets = off-balance sheet items/total assets |
| IB | Dummy variable equal to 1 if the bank is Islamic, 0 otherwise (i.e. Conventional banks (CB)) |
| Dummy variable equal to 1 if year | |
| Dummy variable equal to 1 if year | |
| Size | Log(total asset) |
| Market share | Percentage of comparison between Islamic banks total asset and banks |
Note(s): Market share = Islamic bank total assets/country banks total assets × 100%, see Purboastuti et al. (2015) and Aminah et al. (2019)
Source(s): Authors' own work
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