Comparative study on Islamic banking and conventional banking performance in Malaysia

Conventional banks and Islamic banks are commonly distinguished on the basis of their goals, 'riba' and risk-sharing practices, as well as their financial products and performances. The primary objective of this study is to determine the financial performance of Islamic banks and non-Islam...

Full description

Saved in:

Bibliographic Details
Main Author:	Marcus, Catherine
Format:	Thesis
Language:	eng eng
Published:	2020
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/10555/1/permission%20to%20%20use-ALLOWED.pdf https://etd.uum.edu.my/10555/2/s817293_01.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.10555
record_format	uketd_dc
spelling	my-uum-etd.105552023-06-28T04:41:31Z Comparative study on Islamic banking and conventional banking performance in Malaysia 2020 Marcus, Catherine Hanafi, Norshafizah School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance Conventional banks and Islamic banks are commonly distinguished on the basis of their goals, 'riba' and risk-sharing practices, as well as their financial products and performances. The primary objective of this study is to determine the financial performance of Islamic banks and non-Islamic banks in Malaysia, using a financial ratio from 2011 to 2015. The specific objective of this study is to empirically analyst the profitability performance, liquidity performance and credit risk performance of both Islamic banks and non-Islamic banks. A comparative performance evaluation was considered between Islamic banking (IB) and conventional banking (CB), in the context of Malaysia. This study is useful for depositors, bank managers, shareholders, investors, regulators and academic researchers in order to offer a clear picture and references of the financial conditions during the period considered. The performance of Islamic and Conventional banks is examined through the calculation of financial ratios, return on assets and equity, where six financial ratios represented the independent variables (IV), and return on assets (ROA) and equity (ROE) represented the dependent variables (DV). Ten conventional banks and ten Islamic banks were sampled with the data generated from their respective annual financial cash flow statements extracted from their official bank's websites, and from Bank Negara Malaysia (BNM). Data was generated from the audited financial statements during the 2011-2015 period, income statements, balance sheets as well as the cash flow statements for each Islamic and conventional bank. The significance of the data was determined using an independent sample t-test and regression analysis. According to the analysis, the researcher concluded that Islamic banks are less profitable, less liquid and more risky, but at the same time more efficient in managing the operating expenses to generate revenue, as compared conventional banks. For future research, the sample size should be increased for the same study, and more banks should be taken as an example to generalize the results of the study to the entire industry. 2020 Thesis https://etd.uum.edu.my/10555/ https://etd.uum.edu.my/10555/1/permission%20to%20%20use-ALLOWED.pdf text eng staffonly https://etd.uum.edu.my/10555/2/s817293_01.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Hanafi, Norshafizah
topic	HG Finance
spellingShingle	HG Finance Marcus, Catherine Comparative study on Islamic banking and conventional banking performance in Malaysia
description	Conventional banks and Islamic banks are commonly distinguished on the basis of their goals, 'riba' and risk-sharing practices, as well as their financial products and performances. The primary objective of this study is to determine the financial performance of Islamic banks and non-Islamic banks in Malaysia, using a financial ratio from 2011 to 2015. The specific objective of this study is to empirically analyst the profitability performance, liquidity performance and credit risk performance of both Islamic banks and non-Islamic banks. A comparative performance evaluation was considered between Islamic banking (IB) and conventional banking (CB), in the context of Malaysia. This study is useful for depositors, bank managers, shareholders, investors, regulators and academic researchers in order to offer a clear picture and references of the financial conditions during the period considered. The performance of Islamic and Conventional banks is examined through the calculation of financial ratios, return on assets and equity, where six financial ratios represented the independent variables (IV), and return on assets (ROA) and equity (ROE) represented the dependent variables (DV). Ten conventional banks and ten Islamic banks were sampled with the data generated from their respective annual financial cash flow statements extracted from their official bank's websites, and from Bank Negara Malaysia (BNM). Data was generated from the audited financial statements during the 2011-2015 period, income statements, balance sheets as well as the cash flow statements for each Islamic and conventional bank. The significance of the data was determined using an independent sample t-test and regression analysis. According to the analysis, the researcher concluded that Islamic banks are less profitable, less liquid and more risky, but at the same time more efficient in managing the operating expenses to generate revenue, as compared conventional banks. For future research, the sample size should be increased for the same study, and more banks should be taken as an example to generalize the results of the study to the entire industry.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Marcus, Catherine
author_facet	Marcus, Catherine
author_sort	Marcus, Catherine
title	Comparative study on Islamic banking and conventional banking performance in Malaysia
title_short	Comparative study on Islamic banking and conventional banking performance in Malaysia
title_full	Comparative study on Islamic banking and conventional banking performance in Malaysia
title_fullStr	Comparative study on Islamic banking and conventional banking performance in Malaysia
title_full_unstemmed	Comparative study on Islamic banking and conventional banking performance in Malaysia
title_sort	comparative study on islamic banking and conventional banking performance in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2020
url	https://etd.uum.edu.my/10555/1/permission%20to%20%20use-ALLOWED.pdf https://etd.uum.edu.my/10555/2/s817293_01.pdf
_version_	1776103841785184256

Comparative study on Islamic banking and conventional banking performance in Malaysia

Similar Items