**5.3 Recommendations**

10.Liquid Assets to Total Deposit commonly used in camel rating system as

the results of this study see **Tables 18** and **21**.

*Linear and Non-Linear Financial Econometrics - Theory and Practice*

negatively related to the banks performance.

increase liabilities to Assets ratio by 8.9 times

in the market exchanging plus absolute value = 1.36.

*5.2.2 Results implication for supervisory and regulatory bodies*

increase loan to Assets ratio by 11.5 times.

69% of negative changes in Z score.

*5.2.1 Results implication for Islamic banks*

[1], Zeitun [2]

Islamic banks

**5.2 Results implication**

times

**320**

indicator of liquidity sufficient, but it does not effect on Z score according to

11.Earnings per Share effect positively on Z score with significant level = 0.005.

12.There are some ratios commonly used in Camel rating system as Earning Quality (EQ) indicators, but they are not effect on Z score according to the results of this study see **Tables 23**–**25**, those are include return on assets (ROA) and return on Equity (ROE), this result is contradicted to Merchant

13.Provision for non-performing loan /Gross loan ratio effect positively on Z score with significant level = 0.004, it interpret 34% of changes in Z score.

14.Gross Demotic product (GDP) does not affect significantly on z score of

15. Inflation rate does not affect significantly on Z score. The results number 15 and 15 are contradicted to the results of Zeitun [2] he stated that GDP was found to be positively related to banks performance, while inflation

16.Exchange rate in foreign currency effect negatively on Z score, it represents

The results of this study will imply with two groups as following:

1. If Islamic Banks need to increase their Z score with one unit, they should

2. If Islamic Banks need to increase their Z score with one unit, they should

4. If local currency of the Islamic bank home decrease in front of foreign

Amendment of Camel rating system should be applied as following:

3. If Islamic Banks need to increase their Z score with one unit, they should work to increase their share market price with one unit of the currency which is used

currencies,Islamic bank should understand that its z score will decrease by 3.4

1.The important performance indicator of Capital adequacy is Total liabilities to Total assets Ratio, this results is going in consistence with [33–35] their results Some further studies are recommended to conduct such as:

