Determinants Of Islamic Banks’ Margins In Asian Countries

  • Nurhafiza Abdul Kader Malim Universiti Sains Malaysia
  • Tajul Ariffin Masron Universiti Sains Malaysia
  • Anwar Allah Pitchay Universiti Sains Malaysia


This paper examines the determinants of margins in Islamic banks for the period 2005‐2013. Specifically, we apply pooled, static and dynamic panel regressions on 76 Islamic banks in Asian countries. The results suggest the main factors that influence the margins of Islamic banks are numerous including bank size, default risk, overhead cost, capitalization, market concentration, GDP growth and inflation. It is evident that enhancing macroeconomic policies, risk management capabilities and operational efficiency could help in lowering the margins.


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How to Cite
Malim, N., Masron, T., & Pitchay, A. A. (2017). Determinants Of Islamic Banks’ Margins In Asian Countries. Journal of Islamic Finance, 6, 046-053. Retrieved from