Study reveals key factors driving profitability in Asian banks.
The study looked at factors affecting the profitability of banks in Asia from 2004 to 2014. They found that credit quality, cost management, and bank size are important for bank profits. Banks with high bad loans and high costs are more likely to lose money. Malaysian banks were found to be less profitable than banks in Bangladesh, Indonesia, and Pakistan. Conventional banks were more profitable than Islamic banks. The size of the bank and how much they lend compared to deposits affect profits differently for Islamic and conventional banks.