Determinants of islamic and conventional banks' performance in Malaysia / Muhamad Hazizul Haffis Khalid

Banking industry has crucial roles as financial intermediation to the individuals and also for corporate body. In Malaysia, there are two different banking systems which are Islamic and conventional banking system. Both of banking system has their own financial performance that have to be measure in...

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Bibliographic Details
Main Author: Khalid, Muhamad Hazizul Haffis
Format: Thesis
Language:English
Published: 2018
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/59031/1/59031.pdf
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Summary:Banking industry has crucial roles as financial intermediation to the individuals and also for corporate body. In Malaysia, there are two different banking systems which are Islamic and conventional banking system. Both of banking system has their own financial performance that have to be measure in this study to determine which one is better in term of their performance. Therefore, 10 banks are chosen for each of Islamic and conventional banking sector in Malaysia to be assess in this study that cover from the year 2010 until 2016. To analyse which factors that had significance impact to the performance of the banks in term of return on assets (ROA), several factors have been chosen including of the bank asset size (BAS), capital adequacy (CAR), loan to deposit (LDR), debt to equity (DER), inflation, and gross domestic product (GDP). All the data is collected from annual financial report of all banks involved in this study and the data from World Bank. Regression analysis is use to conduct this study to find out which of the factor has greater impact on the performance of both banking industry.