Impact of macroeconomic variables on islamic banks profitability
The main objective of this study is to understand and determine the impact of macroeconomic variables on Islamic banks’ profitability in Brunei. The impact of GDP growth rate, inflation, interest rate, exchange rate, oil prices, competition and money supply on Bank Islam Brunei Darussalam (BIBD) pr...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Al-Sham Post Publishing (APP)
2018
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/25474/1/JAABR%201%202%202018%201%2016.pdf |
| _version_ | 1825805294888812544 |
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| author | Ali, Qaisar Maamor, Selamah Yaacob, Hakimah Tariq Gill, Muhammad Usman |
| author_facet | Ali, Qaisar Maamor, Selamah Yaacob, Hakimah Tariq Gill, Muhammad Usman |
| author_sort | Ali, Qaisar |
| collection | UUM |
| description | The main objective of this study is to understand and determine the impact of macroeconomic
variables on Islamic banks’ profitability in Brunei. The impact of GDP growth rate, inflation, interest rate, exchange rate, oil prices, competition and money supply on Bank Islam Brunei Darussalam (BIBD) profitability was determined from the year 2012 to the year 2016. The secondary data was obtained from DEPD, AMBD and IMF annual reports. The collected data was analysed using Stata 15. The fixed effects panel regression technique was adopted to measure the impact of each variable on Islamic banks’ profitability. The findings revealed that GDP growth rate, inflation, exchange rate, oil prices and money supply have a significant positive impact on profitability. The findings further revealed that oil prices, GDP and inflation were the most significant and exchange rate and money supply were the least significant determinants of profitability. The findings suggest the regulators and policy makers to discover alternative resources to rejuvenate economic and financial system. Islamic bankers may revamp its marketing strategies to reduce the intensity of macroeconomic variables. This study has vigorously contributed in the existing literature of single country analysis of Islamic banks particularly in the context of Brunei. |
| first_indexed | 2024-07-04T06:29:56Z |
| format | Article |
| id | uum-25474 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:29:56Z |
| publishDate | 2018 |
| publisher | Al-Sham Post Publishing (APP) |
| record_format | eprints |
| spelling | uum-254742019-01-24T07:08:46Z https://repo.uum.edu.my/id/eprint/25474/ Impact of macroeconomic variables on islamic banks profitability Ali, Qaisar Maamor, Selamah Yaacob, Hakimah Tariq Gill, Muhammad Usman HG Finance The main objective of this study is to understand and determine the impact of macroeconomic variables on Islamic banks’ profitability in Brunei. The impact of GDP growth rate, inflation, interest rate, exchange rate, oil prices, competition and money supply on Bank Islam Brunei Darussalam (BIBD) profitability was determined from the year 2012 to the year 2016. The secondary data was obtained from DEPD, AMBD and IMF annual reports. The collected data was analysed using Stata 15. The fixed effects panel regression technique was adopted to measure the impact of each variable on Islamic banks’ profitability. The findings revealed that GDP growth rate, inflation, exchange rate, oil prices and money supply have a significant positive impact on profitability. The findings further revealed that oil prices, GDP and inflation were the most significant and exchange rate and money supply were the least significant determinants of profitability. The findings suggest the regulators and policy makers to discover alternative resources to rejuvenate economic and financial system. Islamic bankers may revamp its marketing strategies to reduce the intensity of macroeconomic variables. This study has vigorously contributed in the existing literature of single country analysis of Islamic banks particularly in the context of Brunei. Al-Sham Post Publishing (APP) 2018 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25474/1/JAABR%201%202%202018%201%2016.pdf Ali, Qaisar and Maamor, Selamah and Yaacob, Hakimah and Tariq Gill, Muhammad Usman (2018) Impact of macroeconomic variables on islamic banks profitability. Journal of Accounting and Applied Business Research, 1 (2). pp. 1-16. ISSN 2616-7751 https://jaaabr.com/index.php/jaaabr/issue/view/2 |
| spellingShingle | HG Finance Ali, Qaisar Maamor, Selamah Yaacob, Hakimah Tariq Gill, Muhammad Usman Impact of macroeconomic variables on islamic banks profitability |
| title | Impact of macroeconomic variables on islamic banks profitability |
| title_full | Impact of macroeconomic variables on islamic banks profitability |
| title_fullStr | Impact of macroeconomic variables on islamic banks profitability |
| title_full_unstemmed | Impact of macroeconomic variables on islamic banks profitability |
| title_short | Impact of macroeconomic variables on islamic banks profitability |
| title_sort | impact of macroeconomic variables on islamic banks profitability |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/25474/1/JAABR%201%202%202018%201%2016.pdf |
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