The profitability of Islamic banking in the world: Liquidity, company size, and capital adequacy

Wardana, Guntur Kusuma ORCID: https://orcid.org/0000-0001-7901-1228 and Lestari, Renita Diyana (2025) The profitability of Islamic banking in the world: Liquidity, company size, and capital adequacy. Indonesian Journal of Banking and Financial Technology (FINTECH), 3 (3). pp. 245-258. ISSN 2985-5551

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Abstract

This study aims to determine the effect of liquidity, company size, and capital adequacy on the profitability of Islamic banks globally. The population comprised 188 members of the IFSB, with 19 Islamic banks from 11 countries as sample subjects. This study employed a quantitative approach with a causality approach. Secondary data were obtained from financial reports available on the official websites of each Islamic bank. Data collection techniques included literature review and documentation analysis. The study concluded that liquidity and company size significantly influence the profitability of Islamic banks globally, while capital adequacy did not significantly influence the profitability of Islamic banks globally.

Item Type:	Journal Article
Keywords:	profitability; liquidity; company size; capital adequacy; Islamic banking
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150299 Banking, Finance and Investment not elsewhere classified
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Guntur Kusuma Wardana
Date Deposited:	15 Jan 2026 14:21

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