Financial Stability Analysis of Islamic Banks in Bangladesh

The paper intends to examine the key factors of financial stability listed Shariah-based Islamic Banks Bangladesh for a period 2009 2019. Z-score is used here as proxy measurement, with independent variables including bank-specific, bank industry-specific, and macroeconomic factors. Bank specific determinants are nonperforming investment, size, capital adequacy, return on equity, earnings, liquidity management efficiency. Development in banking sector factor that unique industry, while GDP inflation To learn more about affect health Bangladesh's banks, pooled ordinary linear regression (OLS) analysis was used. results demonstrate earning development have positive statistically significant impact banks. On other hand, investment has negative effect correlation matrix shows non-performing efficiency negatively correlated stability. In contrast, equity positively health. findings would add value decision makers supervisors formulate strategies maintain It be one few papers banks which investigated macroeconomics well altogether