Determinants of Financial Stability in the Islamic Banking System: A Panel Data Analysis on Selected Countries

Abstract

This study examines how the financial stability of the Islamic banking system is affected by macroeconomic variables. To indicate the financial soundness of the banking system, the Z-score variable, calculated through the capital adequacy ratio and return on assets, is used. The macroeconomic variables selected are inflation and gross domestic product (GDP) per capita. Three separate models are established and analyzed comprising the Z-score as the dependent vaiable and also its subcomponents the capital adequacy ratio and return on assets other dependent variables. The research is conducted using annual panel data for the period 2013-2022 from 11 countries implementing the Islamic banking system. The findings reveal that inflation has a positive and significant effect only on the capital adequacy ratio. Additionally, GDP per capita has a negative and significant effect only on return on assets.

Keywords

• Islamic banking
• Financial stability
• Z-score
• Panel data analysis

İslami Bankacılık Sisteminde Finansal İstikrarın Belirleyicileri: Seçilmiş Ülkeler Üzerine Bir Panel Veri Analizi

Abstract

Bu çalışma, makroekonomik değişkenler karşısında İslami bankacılık sisteminin finansal istikrarının nasıl etkilendiğini incelemektedir. Bankacılık sisteminin finansal sağlamlılığını temsil etmek üzere, sermaye yeterlilik rasyosu ve aktif karlılığı oranları vasıtasıyla hesaplanan Z-skoru değişkeni kullanılmıştır. Makroekonomik değişkenler olarak ise, enflasyon ve kişi başı gayrisafi yurtiçi hasıla (GSYH) değişkenleri seçilmiştir. Bağımlı değişken Z-skoruna ek olarak bu göstergenin alt bileşenleri olan sermaye yeterlilik rasyosu ve aktif karlılığı oranı da bağımlı değişken olmak üzere üç ayrı model kurularak analiz yürütülmüştür. Araştırma, İslami bankacılık sistemini uygulayan 11 ülkenin 2013-2022 dönemi yıllık panel verileri üzerinden gerçekleştirilmiştir. Analiz sonucunda, enflasyonun etkisinin sadece sermaye yeterlilik rasyosu üzerinde pozitif ve anlamlı yönde gerçekleştiği tespit edilmştir. Ayrıca, kişi başı GSYH da sadece aktif karlılığı üzerinde negatif ve anlamlı bir etkiye sahiptir.

Keywords

• İslami bankacılık
• Finansal istikrar
• Z-skoru
• Panel veri analizi.

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