The Contribution of Islamic Banking to Economic Growth the Organization of Islamic Cooperation (OIC) Countries with the CAMELS Approach

The purpose of this study is to examine the contribution of Islamic banking to economic growth by analyzing the influence of Islamic banking performance on economic growth using the CAMELS method. A quantitative approach is employed in this research with secondary data in the form of panel data. Data sources are obtained from the publications of the Islamic Financial Services Board (IFSB) and the World Bank, using a sample comprising 6 countries that are members of the Organization of Islamic Cooperation (OIC) with a time range from 2013 to 2022. The results of the testing demonstrate that the variables CAR, ROA, NPF, and MAN do not significantly affect economic growth, while LIQ and SEN have a positive effect. However, simultaneously, CAR, MAN, NPF, ROA, LIQ, and SEN collectively influence economic growth.