Table 8
(continued)
Variable
All banks
Conventional banks
Islamic banks
Model 1 Model 2 Model 3 Model 4
Model 5 Model 6
Model 7
Model 8
Model 9 Model
10
Model 11 Model
12
0.159
0.370
0.499
0.137
0.314
0.074*
0.148
0.209
0.458
ISLAMIC_D
0.0455
0.283
0.0667
0.290
0.0672
0.513
0.1994
0.068*
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
CRISIS_D
0.0020
0.967
−0.0321
0.530
−0.0408
0.552
−0.3297
0.000***
−0.0073
0.914
−0.0343
0.589
−0.0344
0.678
−0.5108
0.000***
−0.0066
0.916
−0.0540
0.521
−0.0064
0.729
0.0041
0.988
Number of Observations
254
180
117
90
168
131
91
66
86
49
26
24
Number of Parameters
11
15
17
20
10
13
15
18
10
14
16
19
F
0.70
1.41
1.43
3.45
0.92
2.93
2.78
7.18
1.03
1.19
7.61
8.57
Prob > F
0.725
0.154
0.144
0.0001*** 0.509
0.0014*** 0.0022*** 0.0000*** 0.4228
0.3256
0.0013*** 0.0130**
R-squared
0.0280
0.1068
0.1861
0.4836
0.0498
0.2297
0.3389
0.7176
0.1089
0.3067
0.9194
0.9686
Adj R-squared
−0.0120 0.0310
0.0558
0.3434
−0.0043 0.1514
0.2171
0.6176
0.0034
0.0492
0.7985
0.8556
Root MSE
0.2755
0.2522
0.2381
0.1884
0.3016
0.2526
0.2442
0.1658
0.2120
0.1873
0.0168
0.0143
Breusch–Pagan test of independence: chi2
(6)
82.21
57.65
60.64
61.38
105.43
86.33
53.79
47.43
32.89
35.40
23.45
45.58
*Significance Level (p-value): p***
0.01, p**
0.05, p*
0.10
Note
The sample includes 352 observations of 32 banks in the UAE over 11 years. The sample of conventional banks includes 242 observations, and the sample of Islamic banks includes 110
observations. As the dependent variable to measure the bank’s level of profitability, we use Earning Assets to Gross Loans Ratio (EARGL). The independent variables used in this analysis are
bank-level characteristics, capital adequacy ratios, risk and ownership structure measures. The regressions analysis tests the significance of the relationships between the dependent and
explanatory variables, the control variables, and the dummy variables for the whole sample, as well as for the samples of Islamic banks and conventional banks
Banking System in the MENA Region: A Comparative Analysis …
77
(continued)
Variable
All banks
Conventional banks
Islamic banks
Model 1 Model 2 Model 3 Model 4
Model 5 Model 6
Model 7
Model 8
Model 9 Model
10
Model 11 Model
12
0.159
0.370
0.499
0.137
0.314
0.074*
0.148
0.209
0.458
ISLAMIC_D
0.0455
0.283
0.0667
0.290
0.0672
0.513
0.1994
0.068*
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
CRISIS_D
0.0020
0.967
−0.0321
0.530
−0.0408
0.552
−0.3297
0.000***
−0.0073
0.914
−0.0343
0.589
−0.0344
0.678
−0.5108
0.000***
−0.0066
0.916
−0.0540
0.521
−0.0064
0.729
0.0041
0.988
Number of Observations
254
180
117
90
168
131
91
66
86
49
26
24
Number of Parameters
11
15
17
20
10
13
15
18
10
14
16
19
F
0.70
1.41
1.43
3.45
0.92
2.93
2.78
7.18
1.03
1.19
7.61
8.57
Prob > F
0.725
0.154
0.144
0.0001*** 0.509
0.0014*** 0.0022*** 0.0000*** 0.4228
0.3256
0.0013*** 0.0130**
R-squared
0.0280
0.1068
0.1861
0.4836
0.0498
0.2297
0.3389
0.7176
0.1089
0.3067
0.9194
0.9686
Adj R-squared
−0.0120 0.0310
0.0558
0.3434
−0.0043 0.1514
0.2171
0.6176
0.0034
0.0492
0.7985
0.8556
Root MSE
0.2755
0.2522
0.2381
0.1884
0.3016
0.2526
0.2442
0.1658
0.2120
0.1873
0.0168
0.0143
Breusch–Pagan test of independence: chi2
(6)
82.21
57.65
60.64
61.38
105.43
86.33
53.79
47.43
32.89
35.40
23.45
45.58
*Significance Level (p-value): p***
0.01, p**
0.05, p*
0.10
Note
The sample includes 352 observations of 32 banks in the UAE over 11 years. The sample of conventional banks includes 242 observations, and the sample of Islamic banks includes 110
observations. As the dependent variable to measure the bank’s level of profitability, we use Earning Assets to Gross Loans Ratio (EARGL). The independent variables used in this analysis are
bank-level characteristics, capital adequacy ratios, risk and ownership structure measures. The regressions analysis tests the significance of the relationships between the dependent and
explanatory variables, the control variables, and the dummy variables for the whole sample, as well as for the samples of Islamic banks and conventional banks
Banking System in the MENA Region: A Comparative Analysis …
77