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RESEARCH PRODUCT

The determinants of islamic banks performance : a compared and longitudinal analysis including governance mechanisms

subject

description

This doctoral thesis is part of a process of understanding the management of institutions practicing Islamic finance. It focuses on Islamic banks and studies their performance through some determinants offered by banking literature. The idea is to reflect on the sustainable determinants that could, on the one hand, help to better explain Islamic banking performance, and on the other hand, compare the relationships that might exist between these determinants and the different measures of banking performance (conventional and Islamic). This approach to understand Islamic banking performance includes the study of ownership structure, configuration of decision-making power, resilience to the 2008 financial crisis, as well as other governance mechanisms such as sharia supervisory board (SSB) Results from empirical regressions suggest some key determinants of Islamic banking performance. The characteristics of the Sharia Supervisory Board, such as its size, presence of PhD holder, the number of attendances at meetings, tend to positively influence Islamic bank performance. These characteristics were found to be more significantly associated with Islamic bank performance during the 2008 financial crisis, highlighting the role of sharia scholar in the business model of IBs. In view of these results, a qualitative analysis in semi-structured interview with a sharia scholar who has a seat in a SSB was necessary to better understand his indirect and direct influence on the Islamic banking activity and on their performance.