The effect of sukuk on the profitability of Iranian banks:Competing or complementing each other
Subject Areas : Financial Economicsseyedeh fatemeh shojaeayn 1 * , Ghodratollah Emamverdi 2 , mohsen mehrara 3 *
1 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Assistant Professor in Economics
3 - Member of the academic faculty of Tehran University
Keywords: sukuk, quintile regression, banks profitability,
Abstract :
One of the important features of banks and financial institutions is profitability. In modern banking, many components affect profitability, and identifying and determining the effect and type of relationship of these components with the bank's profitability plays an important role in the efficiency and productivity of this system. As one of the Islamic financing tools, Sukuk has enjoyed unprecedented success in financing and investment, and one of the main goals of any bank or financial institution is to explain how these tools affect profitability indicators. Therefore, this research has investigated this work by using the quantile panel regression approach and the data of 15 public and private banks of Iran in the period of 2015 to 2019. The results indicate a positive and significant effect of sukuk on different levels of profitability index, and sukuk and the banking system in Iran complement each other. Therefore, it is suggested that banks and financial institutions should put the necessary infrastructure for the development of sukuk, including the facilitation of issues related to the issuance and rating of sukuk bonds, the creation of a suitable secondary market for their exchange, and the facilitation of liquidity in their agenda. can benefit from its benefits.