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Influencing Factors of Profitability on the Banking Industry : A case study of GCC countries.

ULLAH, NAZIM (2016): Influencing Factors of Profitability on the Banking Industry : A case study of GCC countries. Published in:

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Abstract

The purpose of this study is to examine, evaluation and to see the impact of factors on profitability on banking industry and major differences of the performance in case of profitability of the banking industry (Islamic bank and the conventional bank) between bank-specific and macro-economic characteristics by using data of top twenty six Islamic banks and forty six conventional banks of GCC countries of 2014. In This study, I use Least Square (OLS) method to investigate the impact of assets, loans, equity, deposits, economic growth, inflation and market capitalization on major profitability indicators i.e., return on asset (ROA), and return on equity (ROE). Required data is collected from bank scope database. The empirical results have found strong evidence that only internal factors have strong influence on the profitability on banking sector whereas external factors have no influence on the profitability. In spite of time constrain, I tried at my best level to find out current situation of the profitability of the top selected Islamic and conventional banks of the six countries of the GCC that will helps the readers definitely.

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