Аннотация
This study aims to empirically assess the financial performance and competitive determinants of Islamic and conventional banks operating in QISMUT+3 countries from 2005 to 2022. This study primarily examines the impacts of ESG practices, fintech, mortgage loans, consumer loans, and other firm specific and macro-economic variables. We employed PCSE and Two-step System GMM to conduct the regression analysis. Results indicate that efficient banks are progressively capturing market share from less efficient counterparts, with this competitive dynamic intensifying over time. Prior to COVID-19, fintech integration was at early stages, and competition was less dynamic, leading to a more favorable Boone indicator. In conclusion, the Triple Bottom Line (TBL) theory reveals that while the economic dimension (profit) aligns with TBL through a focus on financial performance, the negative correlation between government effectiveness and profitability suggests a potential conflict with the social pillar of TBL.