Determinants of Islamic Banks profitability in Malaysia
In light of liberalization and the major challenges that are faced by the Malaysian Islamic banking sector, where Islamic banks operate concurrently with conventional banks, the profitability of Malaysian Islamic banks has gradually become an important research topic. Studying the profitability of t...
Saved in:
| id |
my-usim-ddms-13007 |
|---|---|
| record_format |
uketd_dc |
| institution |
Universiti Sains Islam Malaysia |
| collection |
USIM Institutional Repository |
| language |
en_US |
| topic |
Banks and banking--Religious aspects--Islam Banks and banking--Malaysia Profit--Malaysia |
| spellingShingle |
Banks and banking--Religious aspects--Islam Banks and banking--Malaysia Profit--Malaysia Abdelhakim Mohamed Ali Embaya Determinants of Islamic Banks profitability in Malaysia |
| description |
In light of liberalization and the major challenges that are faced by the Malaysian Islamic banking sector, where Islamic banks operate concurrently with conventional banks, the profitability of Malaysian Islamic banks has gradually become an important research topic. Studying the profitability of these banks will enhance their survivability in competitive markets. This study has four objectives, namely, to identify the determinants of the profitability of Malaysian Islamic banks, to examine the effect of the 2008 global financial crisis on such profitability, to differentiate the determinants of the profitability of the domestic Islamic banks with those of foreign Islamic banks, and to investigate if the efficiency of Malaysian Islamic banks is determined by a set of profitability variables. By using quarterly data from 2007 to 2010 that are collected from 17 Malaysian Islamic banks, this study examines how the bank-specific, financial structure and macroeconomic variables affect the profitability of Islamic banks. Panel data multiple regression analysis is conducted to examine the determinants. The Tobit regression model is used to analyze the factors that influence the efficiency of these banks. It is found that overhead, financing, deposits, efficiency, inflation, gross domestic product growth, and bank size are all empirically proven to affect the profitability of Malaysian Islamic banks. Domestic Islamic banks are also shown to be more profitable and efficient than their foreign counterparts, and significant differences are found in the determinants of their profitability. Financing, deposits, bank age, and bank size are also identified as important factors in the profitability and efficiency of banks. The profitability of Islamic banks is negatively affected by the global financial crisis, whereas their efficiency is not affected at all. This study can strengthen risk management in Islamic banks, and help them formulate necessary policies that can promote the protection and development in the industry. |
| format |
Thesis |
| author |
Abdelhakim Mohamed Ali Embaya |
| author_facet |
Abdelhakim Mohamed Ali Embaya |
| author_sort |
Abdelhakim Mohamed Ali Embaya |
| title |
Determinants of Islamic Banks profitability in Malaysia |
| title_short |
Determinants of Islamic Banks profitability in Malaysia |
| title_full |
Determinants of Islamic Banks profitability in Malaysia |
| title_fullStr |
Determinants of Islamic Banks profitability in Malaysia |
| title_full_unstemmed |
Determinants of Islamic Banks profitability in Malaysia |
| title_sort |
determinants of islamic banks profitability in malaysia |
| granting_institution |
Universiti Sains Islam Malaysia |
| url |
https://oarep.usim.edu.my/bitstreams/b0c6fba8-8c92-472b-81d4-8c6bf903fa2b/download https://oarep.usim.edu.my/bitstreams/1619fcec-09eb-4cb6-9812-c91eeb5ac1ca/download https://oarep.usim.edu.my/bitstreams/7eae5929-5432-4120-b28a-56121f2e30fb/download https://oarep.usim.edu.my/bitstreams/7519f54f-8c69-4917-96db-06f8e3289177/download https://oarep.usim.edu.my/bitstreams/d3c62416-4b2a-45e9-921c-5af74302593a/download https://oarep.usim.edu.my/bitstreams/97ac08a3-b54c-4023-ad5b-04321feab5b5/download https://oarep.usim.edu.my/bitstreams/7361877f-b2ba-406a-873e-1b30ffcba3cc/download https://oarep.usim.edu.my/bitstreams/596a98c5-7d13-469f-a320-3a55d1b2f20e/download https://oarep.usim.edu.my/bitstreams/87784fad-84d2-46d8-b64d-5b3eea0f790c/download |
| _version_ |
1812444666741653504 |
| spelling |
my-usim-ddms-130072024-05-29T18:10:15Z Determinants of Islamic Banks profitability in Malaysia Abdelhakim Mohamed Ali Embaya In light of liberalization and the major challenges that are faced by the Malaysian Islamic banking sector, where Islamic banks operate concurrently with conventional banks, the profitability of Malaysian Islamic banks has gradually become an important research topic. Studying the profitability of these banks will enhance their survivability in competitive markets. This study has four objectives, namely, to identify the determinants of the profitability of Malaysian Islamic banks, to examine the effect of the 2008 global financial crisis on such profitability, to differentiate the determinants of the profitability of the domestic Islamic banks with those of foreign Islamic banks, and to investigate if the efficiency of Malaysian Islamic banks is determined by a set of profitability variables. By using quarterly data from 2007 to 2010 that are collected from 17 Malaysian Islamic banks, this study examines how the bank-specific, financial structure and macroeconomic variables affect the profitability of Islamic banks. Panel data multiple regression analysis is conducted to examine the determinants. The Tobit regression model is used to analyze the factors that influence the efficiency of these banks. It is found that overhead, financing, deposits, efficiency, inflation, gross domestic product growth, and bank size are all empirically proven to affect the profitability of Malaysian Islamic banks. Domestic Islamic banks are also shown to be more profitable and efficient than their foreign counterparts, and significant differences are found in the determinants of their profitability. Financing, deposits, bank age, and bank size are also identified as important factors in the profitability and efficiency of banks. The profitability of Islamic banks is negatively affected by the global financial crisis, whereas their efficiency is not affected at all. This study can strengthen risk management in Islamic banks, and help them formulate necessary policies that can promote the protection and development in the industry. Universiti Sains Islam Malaysia 2013 Thesis en_US https://oarep.usim.edu.my/handle/123456789/13007 https://oarep.usim.edu.my/bitstreams/63b61e51-783a-4111-8d76-a3faf395b8c2/download 8a4605be74aa9ea9d79846c1fba20a33 https://oarep.usim.edu.my/bitstreams/b0c6fba8-8c92-472b-81d4-8c6bf903fa2b/download 5654b8c15fdcdf8250211a09afbe323c https://oarep.usim.edu.my/bitstreams/1619fcec-09eb-4cb6-9812-c91eeb5ac1ca/download dbe8dc04a98346514ec48c8acd8dd7d2 https://oarep.usim.edu.my/bitstreams/7eae5929-5432-4120-b28a-56121f2e30fb/download 8f287ecbcdbd2965d1c24904c4c986d5 https://oarep.usim.edu.my/bitstreams/7519f54f-8c69-4917-96db-06f8e3289177/download 7b2b510aa7eca896b11e7dadf4a96409 https://oarep.usim.edu.my/bitstreams/d3c62416-4b2a-45e9-921c-5af74302593a/download 4d6aadab73ab0a8ae06a7990b17208dd https://oarep.usim.edu.my/bitstreams/97ac08a3-b54c-4023-ad5b-04321feab5b5/download 61dcf916564b211589c75f32c06d5621 https://oarep.usim.edu.my/bitstreams/7361877f-b2ba-406a-873e-1b30ffcba3cc/download 1840f279dde6f66be3fa815e471d32dd https://oarep.usim.edu.my/bitstreams/596a98c5-7d13-469f-a320-3a55d1b2f20e/download de300b23a83ede73eddc04e595a833b2 https://oarep.usim.edu.my/bitstreams/87784fad-84d2-46d8-b64d-5b3eea0f790c/download ca47561d491a31aeba5f09adb7f0080f https://oarep.usim.edu.my/bitstreams/af68fab9-6e64-4699-a916-7f234db27576/download 9229625f30be5c37b61ba7680917a620 https://oarep.usim.edu.my/bitstreams/88a4d7bc-1c25-475e-bdaa-7a8c82d7c5a0/download 1eb3f69db1cdf7dc8afdb9acdbbbb4c3 https://oarep.usim.edu.my/bitstreams/6772fb61-2109-4b5b-8b98-78a2add1f52c/download ad7c7b7b48ba1faeb7de649587556806 https://oarep.usim.edu.my/bitstreams/81e7ae5b-4642-4e91-9fdb-dc7c46f468eb/download 7c39d182b6281b674cf2979a648a6e73 https://oarep.usim.edu.my/bitstreams/17c3e48f-b59a-4722-bf16-4d1fd2879caa/download 7af1d829d8cb60264f1a87137e553cb0 https://oarep.usim.edu.my/bitstreams/e02c0aa9-642d-43b2-8624-a826f60c43c6/download a79ff322a118439a6680f5af72c55bd0 https://oarep.usim.edu.my/bitstreams/3725a14c-fdf1-4d00-a602-a55d553e8c88/download 2ba1d7f6ecd5e01ed4856762d398f7e2 https://oarep.usim.edu.my/bitstreams/58e411ae-c37d-4b4b-a9eb-e15af5406ab5/download 9b0c373d3f136d34e6c877d5f5a131e2 https://oarep.usim.edu.my/bitstreams/ff984c8c-7b41-4d1f-ae95-3fb2ff507d0d/download 4ca112ab2ee268b78506d63f72fd0561 Banks and banking--Religious aspects--Islam Banks and banking--Malaysia Profit--Malaysia |