Cuadernos de Economía

ISSN : 0210-0266
Untitled-43

The Impact of Financial and Economic Indicators on the Financial Performance of Islamic Banks in Qatar

  • Israa Abdulridha Mousa Albusheekh Saleh , Faculty of Administration and Economics, Department of Banking and Finance, Babylon University-Iraq
  • Abduljasem Abbas Alaallah , Faculty of Administration and Economics, Department of Banking and Finance, Babylon University-Iraq

Keywords:

Capital adequacy, liquidity, economic factors, interest rate, inflation, economic growth, financial performance, Islamic banks in Qatar. ,

Abstract

Numerous economic and financial factors impact the financial performance of the banking industry, and this phenomenon warrants the attention of scholars. Therefore, this study investigates the effect of financial indicators such as capital adequacy requirement and liquidity, as well as economic factors such as interest rate, inflation, and economic growth, on the financial performance of Islamic banks in Qatar. From 1987 through 2020, secondary data were taken from the state bank database and world development indicators (WDI). The non-linear autoregressive distributed lag (NARDL) technique checks the relationship between variables. The results revealed a positive relationship between the capital adequacy requirement, liquidity, interest rate, inflation, and economic growth and the financial performance of Islamic banks in Qatar. Using financial and economic indicators, the study guides regulators in establishing regulations regarding the financial performance of Islamic banks.