Islamic Banks' Profitability Boosted by Liquidity and GDP, Study Finds.
The article examines factors affecting the profitability of Islamic banks in Bahrain, Jordan, Kuwait, UAE, and Saudi Arabia from 2008-2018. They looked at factors like credit, liquidity, exchange rates, inflation, GDP, and efficiency. The study found that credit, liquidity risk, exchange rates, and inflation don't significantly impact Islamic banks' profitability. However, liquidity (total deposits to total loans), GDP, and efficiency do have a statistical impact on their profitability.