The factors affecting performance of Islamic banks in Malaysia / Muhammad Amirul Syafiq Zainal
Malaysia is one of countries that implemented dual banking systems in the world which are Islamic and conventional. Malaysia became one of the main hubs for Islamic banking in Southeast Asia because of development of the Islamic banking system. Due to the intense competition among Islamic banks, the...
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| Format: | Thesis |
| Language: | English |
| Published: |
2017
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/95689/2/95689.pdf |
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| Summary: | Malaysia is one of countries that implemented dual banking systems in the world which are Islamic and conventional. Malaysia became one of the main hubs for Islamic banking in Southeast Asia because of development of the Islamic banking system. Due to the intense competition among Islamic banks, the introduction of more innovative products is projected to tap investment opportunities not only for Malaysia but also for the rapidly growing Southeast Asian region. The purpose of this study is to examine and identify the factors that will significantly affect Islamic performance of banks. This research will be focusing on eight (8) Islamic banks that based in Malaysia. Secondary quarterly data will be gathered for the period of 2011 to 2015 and the data is collected from several published sources such as Bankscope and websites. The explanatory of variables in this study are divided into two categories which is internal and external factors. Capital adequacy, operational efficiency and bank size is the internal factors or bank-specific variables while the external factors or macroeconomic variables are inflation and economic growth. From the finding indicates that two of five independent variables have significant with the dependent variable or profitability of 6 Islamic banks in Malaysia and. All microeconomic or internal variables are not significant toward profitability and performance of Islamic banks. Besides that, this research carry out the inflation rate is negative relationship with bank's performance and economic growth rate shows have positive relationship with performance of the Islamic banks in Malaysia. |
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