The purpose of this paper is to contribute to the existing literature by investigating the determinants of the profitability of Islamic and conventional banks in the Middle East region and revealing the most important factors for these two types of banks. Few papers have studied the performance of Islamic banks and compared their performance with conventional banks. The results from these limited research papers are also various, mainly because the sample sizes are small, or they have analysed data only from one country. Our research used a fixed effect panel data analysis on a sample of 270 banks (111 Islamic and 159 conventional banks) from 12 Middle East countries. We used an unbalanced annual panel of data covering the period 2012–2020. The results show that bank size, equity to assets, annual GDP growth, and annual average oil price have a significant positive effect on Islamic banks’ profitability, while non-performing loans to total gross loans and cost of running operations to operating income have a significant negative effect on both bank types. The results also show that non-performing loans to total gross loans and annual GDP growth contribute more to conventional banks profitability, while oil price contributes only to Islamic banks performance. Inflation and net loans to total assets have no effect on bank profitability for either Islamic or conventional banks. Furthermore, we also found that the Islamic banking industry had a more competitive structure. Our findings have important implications for managers, policy makers, investors and other stakeholders. They can help them to make decisions regarding investments, plans, budgeting, evaluation and the management of business operations.

ISLAMIC BANKING IN THE EUROPEAN UNION COUNTRIES

When investing, the investment motives of return, liquidity, and risk play a role in decision-making. However, due to the increasing relevance of environmental and social issues and the higher availability of sustainable investments, sustainability is an additional investment motive. The attitude of an individual toward sustainability has implications for other investment motives. This paper examines the interplay between the established financial investment motives of return, liquidity, and risk on the one hand and sustainability considerations on the other hand, with a view to the Generation Y cohort. A questionnaire approach was used to collect data from randomly selected Generation Y retail banking customers from Germany. The data were analyzed using correlation and regression methods. The findings of the paper confirm that there is a negatively directed relationship between the profit maximization motive and the green tradeoff intention. Furthermore, education moderates the relationship between the risk minimization motive and the green tradeoff intention. The paper contributes to different stakeholders. Practical implications result for retail banks and investment firms, which could continue to motivate Generation Y customers for sustainable investments and generate stronger financial education through targeted marketing and information campaigns.

The impact of corruption on the profitability of Islamic banks is ambiguous. This study aims to clarify this relationship by using a global sample of 240 banks from 41 countries over the period 2012-2023. The study employs both dynamic and static panel data models, using the Corruption Perception Index as the key corruption measure, and includes various control variables. Our findings indicate that changes in corruption levels significantly affect the profitability of Islamic banks. Increased corruption is associated with a decrease in banks’ ROAA and ROAE. This implies the necessity for policymakers to establish and enforce robust measures aimed at deterring Islamic banks from participating in corrupt practices. Additionally, we recommend that Islamic banks proactively develop a robust governance framework to prevent and combat corruption effectively. The findings remain consistent under various model specifications and highlight the importance of addressing corruption to enhance the financial performance of Islamic banks.

Transakcja terminowa to umowa pomiędzy dwoma stronami na zakup lub sprzedaż określonej ilości waluty w ustalonym terminie w przyszłości po z góry określonym kursie, tzw. kursie terminowym. Nierzeczywiste transakcje terminowe (non-deliverable forward – NDF) są podobne do zwykłych kontraktów forward, jednakże w terminie zapadalności nie wymagają dostawy walut. W przypadku transakcji NDF jedynym przepływem pieniężnym jest płatność różnicy pomiędzy kursem terminowym a bieżącym kursem rynkowym w dniu zapadalności kontraktu. Głównym celem artykułu jest zbadanie czynników, które przyczyniły się do powstania i rozwoju rynku NDF, oraz analiza jego wielkości i struktury walutowej. Badanie rynku, przeprowadzone w oparciu o dane zebrane przez BIS, prowadzi do następujących wniosków. Rynek transakcji NDF rozwijał się bardzo szybko w latach 2013-2019 i w konsekwencji operacje forward bez fizycznej dostawy osiągnęły 13,02% udział w rynku walutowym w 2019 r. Do niezwykle dynamicznego wzrostu aktywności inwestorów, powodowanego zjawiskiem elektronizacji procesu przeprowadzania transakcji, doszło zwłaszcza w 2019 r. W strukturze walutowej globalnego rynku NDF dominują takie waluty jak koreański won, indyjska rupia, brazylijski real oraz tajwański dolar, które były odpowiedzialne za 68% wszystkich operacji NDF w 2019 r. Koncentracja inwestorów na handlu tymi walutami systematycznie rosła w latach 2013-2019. Główną przyczyną pojawienia się i rosnącego zainteresowania inwestorów kontraktami NDF były ograniczenia walutowe stosowane w niektórych krajach, które uniemożliwiały nierezydentom dostęp do lokalnych rynków walutowych.

Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu = Research Papers of Wrocław University of Economics; 2020; vol. 64, nr 6, s. 168-181