Mutanaqishah: Journal of Islamic Banking
Vol. 4 No. 2 (2024): December 2024

Determinants of Financial Sector Performance on Economic Growth of Sharia and Conventional Banks: Case Study in OIC Countries

Izzun Khoirun Nissa (Unknown)



Article Info

Publish Date
13 Nov 2024

Abstract

This research aims to analyze the influence of financial sector developments on the economic growth of sharia and conventional banking in twelve Islamic countries during the 2015-2022 period. This research uses panel data to provide empirical estimates involving 12 Islamic countries during the 2015-2022 period. We collected secondary data from the World Bank. The study's results indicate that the variables of interest rate, total assets of conventional banks, financing, and total assets of Islamic banks do not significantly impact economic growth. Meanwhile, the deposit variable has a negative effect, and the number of Islamic banks has a positive effect on economic growth. In the meantime, examining the impact of the sharia financial sector on economic growth reveals that the financing variables and the number of sharia offices significantly boost economic growth. The variable total assets of Islamic banks have no effect on economic growth. This study fills a research gap by investigating determinants of financial sector performance on sharia and conventional banks.

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Journal Info

Abbrev

mut

Publisher

Subject

Economics, Econometrics & Finance

Description

Mutanaqishah: Journal of Islamic Banking published in online, published by Department of Islamic Banking, Faculty of Islamic Economics and Business, IAIN Sultan Amai Gorontalo. Mutanaqishah contains the results of field research and library research or the results of thoughts about banking and ...