Article Title

العلاقة بين السيولة والربحية والملاءة في المصارف الإسلامية The Relationship between Liquidity, Profitability and Solvency in Islamic Banks

Authors

khaled lafy alnaif, albalqa'a applied university, Zarqa CollegeFollow
Kholoud DaifAllah Al-Qallab, -

Abstract

This study aims to test and analyze the relationship between liquidity, profitability and solvency in Islamic banks.

For this purpose (48) observations of (6) Asian Islamic banks over the period 2009-2016 were comprised.

The empirical results of regression analysis revealed that there is a statistically significant negative relationship between bank profitability and both of liquidity and solvency. The results also showed that the liquidity has a positive significant relationship with solvency.

The study recommends the need to establish Islamic capital market and Islamic investment instrument to help Islamic banks in solving liquidity surplus and shortage problem.

It also recommends the need to specific capital adequacy ratio for Islamic banks taking into consideration the nature of Islamic bank risk.

Recommended Citation

alnaif, khaled lafy and Al-Qallab, Kholoud DaifAllah (2020) "العلاقة بين السيولة والربحية والملاءة في المصارف الإسلامية The Relationship between Liquidity, Profitability and Solvency in Islamic Banks," Jordan Journal of Islamic Studies: Vol. 16: Iss. 1, Article 5.
Available at: https://digitalcommons.aaru.edu.jo/jois/vol16/iss1/5