Determinants of islamic banks Profitability in Mena Region / Mohamed Mamdouh Mohamed Rashwan ; Supervised Osama Abdelkhalek Elansary

Thesis (Ph.D.) - Cairo University - Faculty of Commerce - Department of Business Administration

Purpose {u2013} This thesis assesses the profitability determinants in Islamic banking sector by investigating various dynamics related to bank-specific variables, macroeconomic variables and financial inclusion variables in MENA region. Design/Methodology/Approach {u2013} access was obtained to data sources of a number of specialized worldwide databases that includes "Thomson Reuters {u2013} Zawya", 2Bankscope3, 2Financial Times Banker3, 2The Global Findex3 and 2World Bank3 Databases. The selected sample covers 73 IBs operating in MENA region in the period from 2008-2017. 2Return on Assets3 as well as 2Return on Equity3 have been deployed to represent the profitability term for Islamic banks (IBs) and several new predictor variables assessing financial inclusion are presented such as overall financial structure, financial service penetration and self-service banking prevalence. In addition, common bank-specific variables are employed that include; credit risk, liquidity; size, capital adequacy, effect of income fees and charges and operating costs along with other macro-economic variables that include; economic activity levels (Real Gross Domestic Product Growth), inflation rate along with the average world governance indicator 2WGI3 for each country. A dynamic panel data is applied where descriptive statistics analysis, Pearson correlation matrix, diagnostic econometric tests (Multicollinearity, Endogeneity, Autocorrelation, Heteroscedasticity and Heterogeneity) is used side by side to a GMM regression model

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