The development of the economic system of a nation is closely related with the banking system of that nation. Islamic banking system has been introduced in every Muslim country. As a Muslim country Bangladesh was started practicing this non-interest bearing banking in 1983. This study focused on the determinants like capital adequacy, earnings quality and leverage those affect the profitability of Islamic banking. For this study researchers selected five Islamic banks and collected secondary data from the financial statements of the banks during 2011-2014. The study showed that capital adequacy and leverage were positively related with profitability but there was a negative correlation between cost to income ratio and return on asset (ROA) of the selected bank during that period. It is also found that the independent variables were sufficient to explain the changes of dependent variable ROA.
Real Time Impact Factor:
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Author Name: N. M. Minhajul Haque Chowdhury, Ayesha Siddiqua, Abu Sayed Md. Mahmudul Haque Chowdhury & Md. Mainuddin
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Keywords: Islamic banking, profitability, capital adequacy, earnings quality, leverage.
ISSN: 2520-4750
EISSN: 2521-3040
EOI/DOI: 10.5281/zenodo.439706
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