Using Static Panel Models to Assess the Experience of Islamic Banks in Algeria

Abstract

Banking Islamic process in Algeria still subject to the regulatory which characterizes by stagnation laws of the Central Bank. giving negatively affected in their ability to create value. Summered in there’s profitability indicators. So, the study aimed to focused on its evaluation for the period between 2010 and 2015 using panel models, which found a positive relationship between the return on assets ROA and the net result, and associated with a negative coefficient with the return on equity ROE, revealing an accompanying reverse for the value generated by each monetary unit invested in those banks, which exposes its balance of confidence to depreciation.

Keywords: Islamic banks, profitability, static panel, return on assets, return on equity.

DOI: 10.7176/RJFA/14-2-03

Publication date: January 31^st 2023