The impact of globalization towards Islamic bank performance in Malaysia

The purpose of this study is to understand the relationship between globalization and performance of the Islamic banking system in Malaysia. This study uses the bank characteristic determinants (internal factors), macroeconomic determinants (external factors) and three different types of globalizati...

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Main Author:	Premenath, Subramaniam
Format:	Thesis
Language:	eng eng eng
Published:	2019
Subjects:	HF5001-6182 Business
Online Access:	https://etd.uum.edu.my/8230/1/S822788_01.pdf https://etd.uum.edu.my/8230/2/DEPOSIT%20PERMISSION_s822788.pdf https://etd.uum.edu.my/8230/3/822788%20REFERENCES.docx
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id	my-uum-etd.8230
record_format	uketd_dc
spelling	my-uum-etd.82302021-05-10T06:40:14Z The impact of globalization towards Islamic bank performance in Malaysia 2019 Premenath, Subramaniam Zainuddin, Zaemah Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5001-6182 Business The purpose of this study is to understand the relationship between globalization and performance of the Islamic banking system in Malaysia. This study uses the bank characteristic determinants (internal factors), macroeconomic determinants (external factors) and three different types of globalization including economic globalization, social globalization and political globalization to explain local Islamic bank performance in Malaysia. This study uses regression analysis based on the secondary data for local Islamic banks in Malaysia. The period for this secondary data is 5 years which is from the year 2013 till 2017. This study indicates that there is strong evidence stating both economic and politic globalization shows a negative significant effect on the Islamic bank performance in Malaysia. Meanwhile, social globalization shows an insignificant result on this. As for bank characteristics variables, credit risk shows a negative significant result towards Islamic bank performance in Malaysia while bank size shows a positive and significant result towards Islamic bank performance in Malaysia. The macroeconomic variable which is GDP does not show any significant result towards the Islamic bank performance in Malaysia. Therefore, central bank of Malaysia should give some incentive training for local bankers on how to adopt new supervision and risk management. This will give the local bankers some new knowledge to handle better risk management and directly boost the bank performance. Besides that, banks should develop their credit risk management to overcome any default loans and for better financial performances. Islamic banks in Malaysia also need to expand their businesses as larger banks gives a larger facility which directly boots the bank performance. It is also recommended for Malaysian Islamic banks to improve their forecasting of macroeconomic fluctuations in future to achieve greater efficiency levels. 2019 Thesis https://etd.uum.edu.my/8230/ https://etd.uum.edu.my/8230/1/S822788_01.pdf text eng public https://etd.uum.edu.my/8230/2/DEPOSIT%20PERMISSION_s822788.pdf text eng staffonly https://etd.uum.edu.my/8230/3/822788%20REFERENCES.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Zainuddin, Zaemah
topic	HF5001-6182 Business
spellingShingle	HF5001-6182 Business Premenath, Subramaniam The impact of globalization towards Islamic bank performance in Malaysia
description	The purpose of this study is to understand the relationship between globalization and performance of the Islamic banking system in Malaysia. This study uses the bank characteristic determinants (internal factors), macroeconomic determinants (external factors) and three different types of globalization including economic globalization, social globalization and political globalization to explain local Islamic bank performance in Malaysia. This study uses regression analysis based on the secondary data for local Islamic banks in Malaysia. The period for this secondary data is 5 years which is from the year 2013 till 2017. This study indicates that there is strong evidence stating both economic and politic globalization shows a negative significant effect on the Islamic bank performance in Malaysia. Meanwhile, social globalization shows an insignificant result on this. As for bank characteristics variables, credit risk shows a negative significant result towards Islamic bank performance in Malaysia while bank size shows a positive and significant result towards Islamic bank performance in Malaysia. The macroeconomic variable which is GDP does not show any significant result towards the Islamic bank performance in Malaysia. Therefore, central bank of Malaysia should give some incentive training for local bankers on how to adopt new supervision and risk management. This will give the local bankers some new knowledge to handle better risk management and directly boost the bank performance. Besides that, banks should develop their credit risk management to overcome any default loans and for better financial performances. Islamic banks in Malaysia also need to expand their businesses as larger banks gives a larger facility which directly boots the bank performance. It is also recommended for Malaysian Islamic banks to improve their forecasting of macroeconomic fluctuations in future to achieve greater efficiency levels.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Premenath, Subramaniam
author_facet	Premenath, Subramaniam
author_sort	Premenath, Subramaniam
title	The impact of globalization towards Islamic bank performance in Malaysia
title_short	The impact of globalization towards Islamic bank performance in Malaysia
title_full	The impact of globalization towards Islamic bank performance in Malaysia
title_fullStr	The impact of globalization towards Islamic bank performance in Malaysia
title_full_unstemmed	The impact of globalization towards Islamic bank performance in Malaysia
title_sort	impact of globalization towards islamic bank performance in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2019
url	https://etd.uum.edu.my/8230/1/S822788_01.pdf https://etd.uum.edu.my/8230/2/DEPOSIT%20PERMISSION_s822788.pdf https://etd.uum.edu.my/8230/3/822788%20REFERENCES.docx
_version_	1747828356438556672

The impact of globalization towards Islamic bank performance in Malaysia

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