Volume 18, Issue 4 (12-2023) J. Mon. Ec. 2023, 18(4): 417-439 | Back to browse issues page

ghaffary fard M, asma B. Analysis of Islamic Banks Resilience in Pakistan and Factors affecting it. J. Mon. Ec. 2023; 18 (4) : 1
URL: http://jme.mbri.ac.ir/article-1-635-en.html

Analysis of Islamic Banks Resilience in Pakistan and Factors affecting it

Mohammad Ghaffary fard ^*¹

, Bibi Asma¹

1- ahlul bayt international university

Abstract: (176 Views)

In this study, we make an effort to look at the Resilience of Islamic banks across Pakistan along with how particular banking variables influence their resilience. The data set used for this study is made up of Pakistani Islamic banks from 2015 to 2021. Employing the VOLARE index, it is apparent that Meezan Bank has higher resilience compared to other Islamic banks. Regression approaches were additionally used to assess the association between banking-specific variables and bank resilience. Given that the bulk of Islamic banks have witnessed gains in recent years, the bank size showed a positive and substantial relationship in the estimation. Additionally, as prudential laws have been strengthened by the state bank of Pakistan, the capital adequacy ratio and leverage ratio also found significant and beneficial connections in the model's results. Nevertheless, the regression analysis demonstrated an adverse relationship between the leverage ratio, the non-performing loan ratio, and inflation. This study offers information that will help practitioners, scholars, and researchers to strengthen the economic and financial sources regarding the resilience of Islamic institutions.

Article number: 1

Keywords: Islamic Banking Resilience, Economic resilience, VOLARE Index, Pakistan’s Islamic banks.

Type of Study: Original Research - Empirical | Subject: Economics
Received: 26 Jul 2023 | Accepted: 10 Dec 2024 | Published: 18 Feb 2025

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