[Work in progress] Analysis of the capital structure of banks with Islamic branches in Algeria. Case study of Gulf Bank Algeria (AGB)

Abstract

The Gulf Bank Algeria (AGB) is the first traditional bank to offer islamic banking services and products in Algeria since 2008. Consequently, it is the only bank in Algeria with sufficient data available for analyzing, the bank's capital structure using a multiple linear regression model. The study concludes that the total financing provided by islamic windows has a positive impact on the Debt to Equity ratio (DTE) of Gulf Bank Algeria (AGB). However, there is no significant relationship between Return on Assets (ROA), Return on Equity (ROE), Credit Risk ratio (CR) and the dependent variable DTE. Furthermore, the total financing provided by islamic windows has a positive impact on the  Equity to Total Assetq (ETA) ratio of Gulf Bank Algeria (AGB), but there is no significant relationship between ROA, ROE, Liquidity and the dependent variable ETA.