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The The Impact of Macroeconomic and Specific Factors of Commercial and Islamic Banks on Profitability Evidence from Egyptian Market

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  • Mai Ahmed Abdelzaher

    (Faculty of Commerce, Cairo University, Cairo, Egypt.)

Abstract

The purpose of this research paper is to analyze the effectiveness of the economic factors affecting Islamic and commercial banks during the Egyptian financial crisis from 2003 to 2019. A sample was taken from eleven banks registered in the Egyptian financial market, and the data were collected on an annual basis. The variables are as follows: return on assets (ROA); return on equity (ROE); reinvestment rate; size; nonperforming loans; operating leverage; loan growth; inflation rate; GDP; and deposit growth. Several statistical methods were used, such as a normality test, descriptive statistics, a t-test, and a group unit root. A panel data analysis was also applied to compare data from Islamic and commercial banks. The data revealed a negative relationship between the type of bank and ROA and ROE as well as a positive relationshipbetween the global financial crisis and the banks ROE and ROE.

Suggested Citation

  • Mai Ahmed Abdelzaher, 2022. "The The Impact of Macroeconomic and Specific Factors of Commercial and Islamic Banks on Profitability Evidence from Egyptian Market," International Journal of Economics and Financial Issues, Econjournals, vol. 12(2), pages 16-25, March.
    • Handle: RePEc:eco:journ1:2022-02-2
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    References listed on IDEAS

    as
    1. S. M. Rifat Hassan* & Riyashad Ahmed, 2019. "Internal Determinants of Islamic Bank Profitability: Evidence from Bangladesh," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 5(7), pages 171-176, 07-2019.
    2. Robin, Iftekhar & Salim, Ruhul & Bloch, Harry, 2018. "Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 43-54.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    macro economic factors; specific factors; commercial and Islamic banks; financial crisis;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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