Saudi Cultural Missions Theses & Dissertations
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Item Restricted The Impact of Microeconomic Factors on Banks' Stability and Profitability in the Middle East: Islamic Banks vs. Conventional Banks(Durham University, 2024-09-13) Trabulsi, Ahmed Abdullah A; Ebrahim, Muhammed SThis study investigates the impact of macroeconomic factors, specifically interest rates and GDP growth, on the profitability of Islamic and conventional banks in the Middle East. Using ARIMA/X and VAR models, the study reveals that Islamic banks exhibit lower sensitivity to interest rate fluctuations due to their reliance on profit-and-loss sharing mechanisms, while conventional banks show no significant profitability changes in response to interest rate movements. However, conventional banks are more responsive to GDP growth, benefiting from periods of economic expansion, while Islamic banks demonstrate more stability but are less responsive to short-term economic fluctuations. These findings offer valuable insights for policymakers and regulators, highlighting the need for differentiated regulatory frameworks to ensure the resilience of both banking models in dynamic economic environments.44 0Item Restricted A Comparative Analysis of Islamic and Commercial Banks in the MENA Region: Stability and Response during the COVID-19 Crisis(Saudi Digital Library, 2023-11-23) Alsuwaid, Razan Fayez M; Cave, JoshuaThis study investigates the resilience and performance of Islamic banks compared to commercial banks in the MENA region during the COVID-19 pandemic. Utilising panel data from 10 MENA countries from 2018 to 2022, the research employs regression analysis to discern the determinants influencing these banks' Return on Assets (ROA) and Return on Equity (ROE). The findings underscore the superior resilience of Islamic banks, particularly in terms of ROA, during this challenging period. Critical determinants of Islamic banks' profitability, such as credit risk, cost-to-income ratio, and liquidity, emerged as pivotal in shaping the performance of Islamic banks during the pandemic. The study reveals that Islamic banks' adherence to Shariah principles, especially risk-sharing, and their unique approach to credit management have been instrumental in navigating the challenges of the pandemic. The research contributes to the growing literature on Islamic banking resilience, offering valuable insights for policymakers, banking professionals, and academics.9 0