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.
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: https://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: https://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 https://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
