The Profitability of Islamic Banking in the World: Liquidity, Company Size, and Capital Adequacy

This study aims to determine the effect of liquidity, company size, and capital adequacy on the profitability of Islamic banks globally. The population comprised 188 members of the IFSB, with 19 Islamic banks from 11 countries as sample subjects. This study employed a quantitative approach with a causality approach. Secondary data were obtained from financial reports available on the official websites of each Islamic bank. Data collection techniques included literature review and documentation analysis. The study concluded that liquidity and company size significantly influence the profitability of Islamic banks globally, while capital adequacy did not significantly influence the profitability of Islamic banks globally.