Khawla Abdo, Hanan Al Qudah, Ali Zyadat, Issam Al-makadmah, Mutaz Al Manaseh, Mohammad AlQudah, Hussein Mohammad Aldmour
This study aimed to examine the economic and financial determinants that affect the profitability of Jordanian Islamic banks, as this study was conducted on the three Jordanian Islamic banks during the time period (2012-2019). The study sample consists of three Islamic banks listed on the ASE and using the Panel data method.
Where the study included the variable dependent on the profitability of Islamic banks measured by (average) return on assets and return on property right and independent variables of external determinants which are Inflation, money supply and internal determinants of capital adequacy and liquidity.
The study included the dependent variable represented by the profitability of Islamic banks measured by (the rate of return on assets and the rate of return on equity) and the independent variables represented by the economic determinants, namely: inflation, money supply, and the financial determinants represented by the adequacy of capital and liquidity. The most prominent findings of the study are the presence of a negative and significant effect of the capital adequacy ratio, the presence of a positive and significant effect on the liquidity ratio, a positive and significant effect of the money supply and the absence of a significant effect of the inflation rate on the profitability of Islamic banks the rate of return on equity (ROE), in addition to the absence of a significant effect of the adequacy ratio. The absence of a significant effect of the liquidity ratio, the absence of a significant effect of the inflation rate, and the absence of a significant effect of the money supply on the profitability of Islamic banks the rate of return on assets (ROA).