Turnaround Strategies: A Case Study Of Bank Islam
In Malaysia, Bank Islam was established in 1984 and its existence continues to present. Bank Islam is the sample of Islamic bank that has a good management performance in both Asian and international rankings. When the financial crisis occurred from 1997 to 1998 and 2008 to 2009, it gave an impact t...
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my-usim-ddms-13056 |
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uketd_dc |
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Universiti Sains Islam Malaysia |
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USIM Institutional Repository |
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| topic |
Banks and banking--Religious aspects--Islam Banks and banking--Malaysia Banks and banking -- Islamic countries |
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Banks and banking--Religious aspects--Islam Banks and banking--Malaysia Banks and banking -- Islamic countries Maryam Binti Badrul Munir Turnaround Strategies: A Case Study Of Bank Islam |
| description |
In Malaysia, Bank Islam was established in 1984 and its existence continues to present. Bank Islam is the sample of Islamic bank that has a good management performance in both Asian and international rankings. When the financial crisis occurred from 1997 to 1998 and 2008 to 2009, it gave an impact through the changes in economic performance, including banking activities in Malaysia. This study highlights the performance of an Islamic bank, namely Bank Islam, which was able to withstand the financial crisis. The data were collected from published documents from 1984 to 2015 that are related to the performance of Bank Islam and the changes indicator of Malaysian economy. In the first analysis, the study expose changes in the performance of Bank Islam during the financial crisis by using signs of distress model by Yakola (2014). There are four indicators in Yakola’s model used in this study: Working capital/liquidity, financial, profitability and industry outlook, and employees. In the second analysis, the study explored the turnaround strategies of Bank Islam using a model developed by Schoenberg et al. (2013), which are: content-orientated and process-orientated strategies. This study adopted the case study methodology by utilizing content analysis to analyze the data. The findings show that Bank Islam experienced financial distress based on four indicators; i) working capital/ liquidity (such as declining or negative free cash flow, large contingent liabilities, unresolved near-term debt maturities, revolver draw-down, contracting vendor terms, and increase in outstanding account payable), ii)financial (namely, declining stock price, declining bank or bond price, inability to meet financial covenants, diminishing liquidity, repeated bank amendments, and downgrades in debt ratings), iii) profitability and industry outlook (such as shrinking profit before zakat and tax margin, going concern opinion, deteriorating industry fundamental and regulatory inquiries), and iv) employees (namely management organizational restructuring). Both financial crises (Asian Financial Crisis and Global Financial Crisis) showed the declining performance and Bank Islam managed to do the recovery of their performance. The study also highlights Bank Islam’s experiences in the turnaround plan based on the model of Schoenberg et al. (2013) for content-orientated strategies (namely cost efficiencies, asset retrenchment, focus on core activities, and build for the future) and process-orientated strategies (namely reinvigoration of firm leadership and culture change). Based on the Turnaround Plan of Bank Islam, the strategy was successful to handle the recovery performance from 2006 to 2009. As for other strategic plan under Bank Islam, namely the Sustainable Growth Plan (from 2010 to 2012) and Hijrah 2 Excellence (from 2013 to 2015), the study also highlights the development and growth performance of Bank Islam after the implementation of the Turnaround Plan. |
| format |
Thesis |
| author |
Maryam Binti Badrul Munir |
| author_facet |
Maryam Binti Badrul Munir |
| author_sort |
Maryam Binti Badrul Munir |
| title |
Turnaround Strategies: A Case Study Of Bank Islam |
| title_short |
Turnaround Strategies: A Case Study Of Bank Islam |
| title_full |
Turnaround Strategies: A Case Study Of Bank Islam |
| title_fullStr |
Turnaround Strategies: A Case Study Of Bank Islam |
| title_full_unstemmed |
Turnaround Strategies: A Case Study Of Bank Islam |
| title_sort |
turnaround strategies: a case study of bank islam |
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Universiti Sains Islam Malaysia |
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my-usim-ddms-130562024-05-29T19:18:54Z Turnaround Strategies: A Case Study Of Bank Islam Maryam Binti Badrul Munir In Malaysia, Bank Islam was established in 1984 and its existence continues to present. Bank Islam is the sample of Islamic bank that has a good management performance in both Asian and international rankings. When the financial crisis occurred from 1997 to 1998 and 2008 to 2009, it gave an impact through the changes in economic performance, including banking activities in Malaysia. This study highlights the performance of an Islamic bank, namely Bank Islam, which was able to withstand the financial crisis. The data were collected from published documents from 1984 to 2015 that are related to the performance of Bank Islam and the changes indicator of Malaysian economy. In the first analysis, the study expose changes in the performance of Bank Islam during the financial crisis by using signs of distress model by Yakola (2014). There are four indicators in Yakola’s model used in this study: Working capital/liquidity, financial, profitability and industry outlook, and employees. In the second analysis, the study explored the turnaround strategies of Bank Islam using a model developed by Schoenberg et al. (2013), which are: content-orientated and process-orientated strategies. This study adopted the case study methodology by utilizing content analysis to analyze the data. The findings show that Bank Islam experienced financial distress based on four indicators; i) working capital/ liquidity (such as declining or negative free cash flow, large contingent liabilities, unresolved near-term debt maturities, revolver draw-down, contracting vendor terms, and increase in outstanding account payable), ii)financial (namely, declining stock price, declining bank or bond price, inability to meet financial covenants, diminishing liquidity, repeated bank amendments, and downgrades in debt ratings), iii) profitability and industry outlook (such as shrinking profit before zakat and tax margin, going concern opinion, deteriorating industry fundamental and regulatory inquiries), and iv) employees (namely management organizational restructuring). Both financial crises (Asian Financial Crisis and Global Financial Crisis) showed the declining performance and Bank Islam managed to do the recovery of their performance. The study also highlights Bank Islam’s experiences in the turnaround plan based on the model of Schoenberg et al. (2013) for content-orientated strategies (namely cost efficiencies, asset retrenchment, focus on core activities, and build for the future) and process-orientated strategies (namely reinvigoration of firm leadership and culture change). Based on the Turnaround Plan of Bank Islam, the strategy was successful to handle the recovery performance from 2006 to 2009. As for other strategic plan under Bank Islam, namely the Sustainable Growth Plan (from 2010 to 2012) and Hijrah 2 Excellence (from 2013 to 2015), the study also highlights the development and growth performance of Bank Islam after the implementation of the Turnaround Plan. Universiti Sains Islam Malaysia 2021-10 Thesis en_US https://oarep.usim.edu.my/handle/123456789/13056 https://oarep.usim.edu.my/bitstreams/e701b7f1-1f57-4ce3-9e43-96ccbd594e19/download 8a4605be74aa9ea9d79846c1fba20a33 https://oarep.usim.edu.my/bitstreams/edf8d763-ae11-4f28-9423-9dd94dd9ea61/download ed1cb255d6e0aa6721ea236f57c2fd1a https://oarep.usim.edu.my/bitstreams/96998eb2-e1c6-466b-b86b-8b3920ba9bc5/download 062eafbe2bd8827d3ddd1a6ef9bdd4f8 https://oarep.usim.edu.my/bitstreams/327c998e-ac52-4f5a-85d0-d98e5c431488/download a9d38c2a7863f9f338449b00bb376cce https://oarep.usim.edu.my/bitstreams/2ea48f53-4d96-4405-9151-b892cb1649c9/download bddac82a1a25c4306102a5b6e7331b94 https://oarep.usim.edu.my/bitstreams/0b91f89d-beaa-4f3a-b08c-58ce137d6cab/download 5f18019bf3ab588dbe064bfce32fd5c4 https://oarep.usim.edu.my/bitstreams/15b95f28-2ade-44cb-8d4f-90c73744aadd/download dd940067b8dcc8f6710f8ce7c0ee6273 https://oarep.usim.edu.my/bitstreams/619887ee-8d8a-4db6-aa0a-454b2279c706/download afa6084aab16e31aed2aefb30d1f4092 https://oarep.usim.edu.my/bitstreams/ac3c5c99-032b-456c-9ecc-68468627179b/download e04aa006c23fad8f6717e4c51d470886 https://oarep.usim.edu.my/bitstreams/1392001a-e82a-42db-b409-3fdf8ea3d41b/download fa9923fafb697a3532de2a867bc2de49 https://oarep.usim.edu.my/bitstreams/5824be28-0080-4960-b1ca-85798e0e42d0/download 51b9a382366089106ee8a21f204fe2d8 https://oarep.usim.edu.my/bitstreams/45373a35-c525-430e-a1bf-e7b7e9f6a6ba/download 58460e115b904896addb974ca991280e https://oarep.usim.edu.my/bitstreams/5a8f0837-e541-4201-8701-2605bc4a12b3/download 48542b50ff64feed21aeafeabc886ae7 https://oarep.usim.edu.my/bitstreams/35722f9e-278a-4b1d-92ac-171324020f86/download bb8a360a58d76b81705b791b2918809f https://oarep.usim.edu.my/bitstreams/b69d8c89-1df1-4224-8330-bb70b37a3d38/download 7b7491ffc356834c2e4de637fe0cb826 https://oarep.usim.edu.my/bitstreams/76d349c1-6c64-4ce3-b18a-e751b2323877/download c05b991879f1f28380d857b615e8cff4 https://oarep.usim.edu.my/bitstreams/ec00e513-6ee6-4fe9-8945-9232e476dad4/download 34f7cc7de8e75f7fe18e6903ba52c416 https://oarep.usim.edu.my/bitstreams/1415d656-cc03-4a64-83c9-f74821252f31/download 77ddf3fa942e0fb8acda2ea15d40e0d4 https://oarep.usim.edu.my/bitstreams/bc9329d2-8918-4a36-a9b1-9c5e306b7f8b/download 6cbb787ec8609f7599d9e4b11154bdb6 https://oarep.usim.edu.my/bitstreams/cc319bf3-3817-4f80-9782-c79edc92edc5/download 7dfd1a006d1039d04e140973bb9bc098 https://oarep.usim.edu.my/bitstreams/f94e79b5-2c4a-4f86-ae62-4cc5224aa6ff/download c9a7fe7738c2228fa6f9c22df879e642 Banks and banking--Religious aspects--Islam Banks and banking--Malaysia Banks and banking -- Islamic countries |