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    The profitability of Islamic banking in Sudan

    Elgadi, E. and Yu, Ellen Pei-yi (2018) The profitability of Islamic banking in Sudan. International Journal of Management Practice 11 (3), pp. 233-258. ISSN 1477-9064.

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    Abstract

    We investigate the possible profitability determinants by employing the dataset comprised by 27 Sudanese banks from 2005 and 2013. Our contribution to the literature is that we examine the following three models of finance specific to Islamic banking performance: (a) Profit and Loss Sharing, (b) Non-profit and Loss Sharing and (c) Salam mode of finance. We find that ownership, capitalisation and asset utilisation have a positive impact on return on assets (ROA) while operation efficiency, bank age, leverage and specialisation bring an adverse impact. Our empirical evidence also indicates that the Profit and Loss Sharing mode of finance (PLS), one of the financial products provided by Islamic banking only, brings a positive impact on both financial performance indicators: return on assets (ROA) and return on equity (ROE).

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): Profitability determinants, Banking performance, Sudanese Islamic banks.
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Ellen Yu
    Date Deposited: 09 Oct 2017 15:55
    Last Modified: 02 Aug 2023 17:36
    URI: https://eprints.bbk.ac.uk/id/eprint/19989

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