Determinants Of Profitability Of Islamic Banks Of Pakistan -A Case Study On Pakistan’s Islamic Banking Sector
The purpose of this study is to find out the determinants of Islamic banks of Pakistan. The authors collected data of five Islamic banks of Pakistan over ten years extending from 2006-2015. The independent variables were GDP, Size, Inflation & Liquidity whereas dependent variables was Return on Asset. By using STATA software and employed panel regression the researcher found that in fixed model effect, there are two significant variables at 5% i.e., size of Islamic banks and liquidity. Liquidity has positive whereas size has negative relationship with the profitability of Islamic banks.