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The effects of management policy on the performance of Islamic banks

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Abstract

This study examines the effects of management controlled variables on the performance of Islamic banks. Management controlled variables are related to assets, liabilities and expenses management. This study indicates that three major investment activities are revenue generating activities for Islamic banks, whereas savings and investment deposits are costs to the banks. As expected, total expenses are positively correlated with profitability.

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Authors
  1. Sudin Haron
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Additional information

The author is Associate Professor of Banking and Finance at the School of Management, The Northern University of Malaysia, Malaysia. He wishes to thank an anonymous referee for providing helpful comments and suggestions.

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Haron, S. The effects of management policy on the performance of Islamic banks. Asia Pacific J Manage 13, 63–76 (1996). https://doi.org/10.1007/BF01733817

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  • DOI: https://doi.org/10.1007/BF01733817

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