Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir

The existence of Islamic banks that grow rapidly in every corner of the world has caused strong competition among them and other conventional banks in Malaysia. This requires the banks management to choose wisely on the determinants that make them to remain strong and relevant in the Islamic banking...

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Main Author:	Basir, Nur Liyana
Format:	Thesis
Language:	English
Published:	2017
Subjects:	Banking
Online Access:	https://ir.uitm.edu.my/id/eprint/73247/1/73247.pdf
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id	my-uitm-ir.73247
record_format	uketd_dc
spelling	my-uitm-ir.732472023-03-20T04:42:04Z Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir 2017 Basir, Nur Liyana Banking Finance, Islamic The existence of Islamic banks that grow rapidly in every corner of the world has caused strong competition among them and other conventional banks in Malaysia. This requires the banks management to choose wisely on the determinants that make them to remain strong and relevant in the Islamic banking sector. The main purpose of this study is to predict the return on equity of some Islamic banks in Malaysia using forecast value of significant banking determinant. The significant banking determinants selected for the study include deposit ratio, operating efficiency and market concentration. The study utilized secondary data from year 2010 until year 2016 for 13 Islamic banks in Malaysia. Principal Component Analysis was applied in order to get internal and external significant determinants. The internal and external significant determinants are Bank Size and Gross Domestic Product. Then, Multiple Linear Regression was used to formulate the Bank Profit Model which shows the relationship between the Bank Size and GDP with Return on Equity. Next, Geometric Brownian Motion used to forecast the value of Bank Size and GDP. The forecast value was substitute into Bank Profit Model to calculate the Return on Equity for each bank. From the results of the study, management of bank can have focused on Bank Size and Gross Domestic Product in order to gain more profit. Besides, the Return on Equity for Islamic banks in this study in a range of 3 percent to 23.82 percent. 2017 Thesis https://ir.uitm.edu.my/id/eprint/73247/ https://ir.uitm.edu.my/id/eprint/73247/1/73247.pdf text en public masters Universiti Teknologi MARA (UiTM) Faculty of Computer and Mathematical Sciences Ismail, Rashidah
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Ismail, Rashidah
topic	Banking Banking
spellingShingle	Banking Banking Basir, Nur Liyana Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir
description	The existence of Islamic banks that grow rapidly in every corner of the world has caused strong competition among them and other conventional banks in Malaysia. This requires the banks management to choose wisely on the determinants that make them to remain strong and relevant in the Islamic banking sector. The main purpose of this study is to predict the return on equity of some Islamic banks in Malaysia using forecast value of significant banking determinant. The significant banking determinants selected for the study include deposit ratio, operating efficiency and market concentration. The study utilized secondary data from year 2010 until year 2016 for 13 Islamic banks in Malaysia. Principal Component Analysis was applied in order to get internal and external significant determinants. The internal and external significant determinants are Bank Size and Gross Domestic Product. Then, Multiple Linear Regression was used to formulate the Bank Profit Model which shows the relationship between the Bank Size and GDP with Return on Equity. Next, Geometric Brownian Motion used to forecast the value of Bank Size and GDP. The forecast value was substitute into Bank Profit Model to calculate the Return on Equity for each bank. From the results of the study, management of bank can have focused on Bank Size and Gross Domestic Product in order to gain more profit. Besides, the Return on Equity for Islamic banks in this study in a range of 3 percent to 23.82 percent.
format	Thesis
qualification_level	Master's degree
author	Basir, Nur Liyana
author_facet	Basir, Nur Liyana
author_sort	Basir, Nur Liyana
title	Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir
title_short	Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir
title_full	Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir
title_fullStr	Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir
title_full_unstemmed	Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir
title_sort	predicting return on equity based on significant determinants for islamic banks in malaysia / nur liyana basir
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Faculty of Computer and Mathematical Sciences
publishDate	2017
url	https://ir.uitm.edu.my/id/eprint/73247/1/73247.pdf
_version_	1783735969662369792

Predicting return on equity based on significant determinants for Islamic banks in Malaysia / Nur Liyana Basir

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