Chowdhury, A.N.M. M. H., Siddiqua, A., Chowdhury, A. S. M. M. H., & Mainuddin, M. (2017). Effect of capital adequacy, earnings quality and leverage on Islamic Banking profitability: A case of Bangladesh.

40-46

 

 

EFFECT OF CAPITAL ADEQUACY, EARNINGS QUALITY AND LEVERAGE ON ISLAMIC BANKING PROFITABILITY: A CASE OF BANGLADESH

N. M. Minhajul Haque Chowdhury, Ayesha Siddiqua, Abu Sayed Md. Mahmudul Haque Chowdhury & Md. Mainuddin

 

 

ABSTRACT

The development of the economic system of a nation is closely related with the banking system of that nation. Islamic banking system has been introduced in every Muslim country. As a Muslim country Bangladesh was started practicing this non-interest bearing banking in 1983. This study focused on the determinants like capital adequacy, earnings quality and leverage those affect the profitability of Islamic banking. For this study researchers selected five Islamic banks and collected secondary data from the financial statements of the banks during 2011-2014. The study showed that capital adequacy and leverage were positively related with profitability but there was a negative correlation between cost to income ratio and return on asset (ROA) of the selected bank during that period. It is also found that the independent variables were sufficient to explain the changes of dependent variable ROA.

 

Key words: Islamic banking, profitability, capital adequacy, earnings quality, leverage.

 

 

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Title:  Effect of capital adequacy, earnings quality and leverage on Islamic Banking profitability: A case of Bangladesh.

Authors: Chowdhury, A.N.M. M. H., Siddiqua, A., Chowdhury, A. S. M. M. H., & Mainuddin, M.

Journal Name: International Journal of Science and Business

Website: http://ijsab.com

ISSN: 2520-4750

DOI: 10.5281/zenodo.439706

Media: Online and Print

Volume: 1

Issue: 1

Acceptance Date: 15/02/2017

Date of Publication: 16/02/2017

PDF URL: http://ijsab.com/wp-content/uploads/4.pdf

Free download: Available

Page: 41-46

First Page: 41

Last Page: 46

Citation:

 

Chowdhury, A.N.M. M. H., Siddiqua, A., Chowdhury, A. S. M. M. H., & Mainuddin, M. (2017). Effect of capital adequacy, earnings quality and leverage on Islamic Banking profitability: A case of Bangladesh. International Journal of Science and Business, 1(1), 41–46. doi:10.5281/zenodo.439706

 

Retrieve form http://ijsab.com/wp-content/uploads/4.pdf

 

 

 

 

About Authors

N. M. Minhajul Haque Chowdhury,

Master of Business Administration

                Department of Finance and Banking

Hajee Mohammad Danesh Science and Technology University (HSTU)

Dinajpur-5200, Bangladesh

Email: mhchowdhury2016@gmail.com

 

 

Ayesha Siddiqua

Master of Business Administration

                                     Department of Finance and Banking

Hajee Mohammad Danesh Science and Technology University (HSTU)

Dinajpur-5200, Bangladesh

Email: ayeshasiddiquakeya@gmail.com

 

 

Abu Sayed Md. Mahmudul Haque Chowdhury

Senior Lecturer

Department of English

University of Development Alternative (UODA)

Dhaka-1209, Bangladesh

Email: abusayed34@ymail.com

 

 

Md. Mainuddin

Master of Business Administration

         Department of Marketing

Hajee Mohammad Danesh Science and Technology University (HSTU)

Dinajpur-5200, Bangladesh

Email: muddinhstu92@gmail.com

 

 

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