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A Note on the Profitability of African Banks: Islamic Versus Conventional

Author

Listed:
  • Whelsy Boungou

    (Paris School of Business)

Abstract

This paper aims to examine and compare the profitability of Islamic and conventional banks located in 20 African countries over the period 2009-2017. Based on a sample of 21 Islamic banks and 143 conventional banks, this paper shows that the determinants of performance are almost the same between Islamic and conventional banks in Africa. Our findings highlight that the specific characteristics (such as capitalization and efficiency) of conventional and Islamic banks influence their performance in Africa. Precisely, we find that large and deposit-dependent banks perform better.

Suggested Citation

  • Whelsy Boungou, 2022. "A Note on the Profitability of African Banks: Islamic Versus Conventional," The African Finance Journal, Africagrowth Institute, vol. 24(1), pages 16-23.
    • Handle: RePEc:afj:journl:v:24:y:2022:i:1:p:16-23
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    File URL: https://journals.co.za/doi/abs/10.10520/ejc-finj_v24_n1_a2
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    More about this item

    Keywords

    Profitability; Islamic Banks; Business cycle; Africa;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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