Study on Malaysian Islamic banks performance
The performance of the financial system has big influences on the growth of Islamic banking as it will bring public trust and confidence in the whole system and at the same time contribute for a healthy and well-functioning economy of a country. Hence, financial institutions including banks need to...
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| Main Author: | |
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| Format: | Thesis |
| Language: | eng eng |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/11208/1/s826055_01.pdf https://etd.uum.edu.my/11208/2/s826055_02.pdf |
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| Summary: | The performance of the financial system has big influences on the growth of Islamic banking as it will bring public trust and confidence in the whole system and at the same time contribute for a healthy and well-functioning economy of a country. Hence, financial institutions including banks need to maintain their financial soundness and stability as they play an important role in the economy. Thus, this study was conducted to examine the influence of asset quality indicators variables and macroeconomic factors such as Loan to Deposit Ratio (LTDR), Total Loan to Total Asset (TLTA), Non-Performing Loan (NPL), Gross Domestic Product (GDP), Inflation (INF) and Money Supply (M3) on the Financial Performance of Malaysian Islamic banks. By using E-Views 12 software and SPSS 21, the data obtained from the year 2012 until 2021 then is evaluated and interpreted. The Multiple Regression Analysis was conducted in order to examine the factors that influencing the financial performance of Malaysian Islamic banks. The findings from this study revealed that two variables were found to be insignificant with the financial performance of Malaysian Islamic banks which are LDTR and TLTA. While four variables were found to be significant with the financial performance of Malaysian Islamic banks which are NPL, GDP, INF and M3. The result of this study is expected to be used as reference in further researches as it helps other researchers to better understand the Islamic bank performance determinants. Furthermore, bank managers could use this study as a guideline in managing and planning their business to achieve higher profit. This study also provides knowledge regarding the Islamic banking sector and clearer picture on Malaysian financial performance of Islamic banks to the readers. |
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