Browsing by Author "Afolabi, Hafsat Olatanwa"

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    BANK-SPECIFIC DETERMINANTS OF ISLAMIC BANKING PROFITABILITY: EVIDENCE FROM SELECTED AFRICAN COUNTRIES
    (Published by the Department of Banking and Finance, University of Abuja, 2026) Jimoh, Abdulrazaq Taiye; Salihu, Ismail; Khaleel, Sa’adatu Ibrahim; Afolabi, Hafsat Olatanwa
    The determinants of Islamic bank profitability in Africa remain a subject of empirical investigation as the extent to which bank-specific variables affect performance is underexplored by past studies. This study therefore investigated the effects of bank-specific characteristics on profitability of Islamic banks in Africa. Specifically, the study examined the effects of asset quality, liquidity, operational efficiency, revenue diversification and capital adequacy on Islamic bank profitability is selected African countries. The study population consists of 25 African Islamic Financial Services Board (IFSB) member countries as at January 2026. Purposive sampling technique was used to select 5 countries while quarterly data were collected from IFSB database for period, 2013 to 2024. The data were analysed using Fixed Effect Regression estimation technique. Results showed that capital adequacy (β=0.91, p<0.05), deposit liability (β=0.33, p<0.05), revenue diversification (β=0.69, p<0.05) and total financing (β=0.16, p<0.05) had positive and significant effects on return on assets. Conversely, non-performing financing (β=-0.28, p<0.05), cost to income ratio (β=-1.98, p<0.05), and liquidity ratio (β=- 5.72, p<0.01) had negative significant impact on ROA. It was concluded based on these findings, that bank-specific factors affect profitability of Islamic banks in selected African countries. It is therefore recommended for policy implementation, that the management of Islamic banks in Africa should ensure that the banks are adequately capitalized by maintaining good capital adequacy to enhance their profitability. Islamic banks in Africa should also ensure that their financing activities are efficiently and effectively executed and monitored, to reduce nonperforming facilities that are capable of depleting their profitability
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    Determinants of Stock Market Liquidity in Nigeria
    (Labuan Faculty of International Finance, Universiti Malaysia Sabah, 2022) Abdulkadir, Rihanat Idowu; Olatinwo, Olabanji Hafeez; Afolabi, Hafsat Olatanwa
    This paper examines the predictors of stock market liquidity in Nigeria. Using the autoregressive distributed lag (ARDL) bounds testing approach on monthly data series, the study finds evidence that stock market liquidity is enhanced with improved market performance and monetary interventions by the government. The study also finds that while liquidity persistence features in the market, high price levels impede market liquidity. However, no evidence is found for such persistence in the long run. Results obtained are robust to alternate specification of liquidity with the use of the AMIHUD illiquidity ratio. Policy holders and investors should consider the predictors documented in this study when making liquidity forecasts or investment decisions. This will assist to mitigate related risks, enhance market liquidity and consequently improve investors’ confidence in the market