Determinants of Islamic banks' performance in Malaysia / Haida Kamelia Md Kamal
In 1983, Malaysia's first Islamic bank was created. Commercial banks, merchant banks, and finance organisations were granted authority to offer Islamic banking products and services under the Islamic Banking Scheme (IBS). Malaysia's Islamic finance industry is thriving. The main purpose of...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/101945/1/101945.pdf |
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| Summary: | In 1983, Malaysia's first Islamic bank was created. Commercial banks, merchant banks, and finance organisations were granted authority to offer Islamic banking products and services under the Islamic Banking Scheme (IBS). Malaysia's Islamic finance industry is thriving. The main purpose of this study is to investigate the determinants that affect Islamic bank performance in Malaysia between 2016 and 2020. The study investigates whether the drivers of Islamic banks' performance in Malaysia contribute to Islamic banks' return on assets. The independent factors in this study are the Capital Adequacy Ratio (CAR), Bank Size, Liquidity, Inflation, and Gross Domestic Product (GDP), while the dependent variable is the Return on Asset (ROA). To acquire these variables, the financial ratios approach will be employed, and the regression model will be run using Ordinary Least Squares (OLS). The information will be gathered from the financial reports of Islamic banks, the World Bank, and Knoema. Overall, the findings show that GDP have a significant relationship with Islamic banks' return on assets in Malaysia. During the study period, the researchers discovered no significant relationship between ROA and CAR, Liquidity, Bank Size and Inflation. As a result of the findings, policymakers in Malaysia can pay more attention to the profitability of Islamic banks. |
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