Assessing the performance of Islamic and conventional bank in Malaysia in the year between 2009 until 2015 a comparative study / Ameer Razali

Banks play an important role in determining on the economy of all countries. Malaysia is one of the countries that have a good banking system in the world which offered conventional and Islamic banking systems. This study is conducted to measure the financial performance between these two different...

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Bibliographic Details
Main Author: Razali, Ameer
Format: Thesis
Language:English
Published: 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/99626/2/99626.pdf
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Summary:Banks play an important role in determining on the economy of all countries. Malaysia is one of the countries that have a good banking system in the world which offered conventional and Islamic banking systems. This study is conducted to measure the financial performance between these two different banking systems in Malaysia. In order to make a comparison on these two banking systems, about 10 Islamic and 10 Conventional banks are chosen among the players in banking sector in Malaysia. The selection of the banks is based to the bank size which is from middle and small asset size. The data of the banks is collected from the annual financial reports in the Bankscope for the period of 2009 until 2015. A regression analysis was conducted to identify which factors had giving impact to return on asset (ROA) of the banks including bank asset size (BAS), capital adequacy (CAR), loan to deposit (LDR), debt to equity (DER) and Dummy. According to the empirical analysis in this study has found that conventional banks performed better than Islamic banks in terms of profitability.