The impactof Islamic financial innovation on improving the profitability ofislamic banks : AlsalamBank Of Alegria

Abstract

This research paper  aimed to discuss about the issue of the effect  of financial innovation on improving the profitability of Islamic banks , in order to clarify the ability of innovative Islamic financial products in enhancing  of the profitability of Islamic banks, in addition to explaining the concept of financial  innovation in Islamic banks, its principals and its characteristics.In the study  which has done in the Algerian alsalam bank on some new Islamic financial innovations « Hadiyati product and Omrati product » ; that introduced in the last two years in the Algerian banking market and their impact on improving the profitability of alsalam bank.

The study concluded that financial innovation in Islamic banks has a great impact on improving their level of profitability.