Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia

Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia

Islamic banking system is a field that an interesting to study because this system is based on Islamic law, while the conventional system is based on riba. Islamic banks almost have a competition from conventional banks that have grown rapidly over the last 20 years ago. There are many of the conven...

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Main Author: Nor Ermawati, Hussain
Format: Thesis
Language:eng
Published: 2011
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/3686/1/s805011.pdf
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
advisor Abdullah, Hussin
topic HG Finance
spellingShingle HG Finance
Nor Ermawati, Hussain
Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia
description Islamic banking system is a field that an interesting to study because this system is based on Islamic law, while the conventional system is based on riba. Islamic banks almost have a competition from conventional banks that have grown rapidly over the last 20 years ago. There are many of the conventional banks in Malaysia such as Affin Bank Berhad, Alliance Bank Malaysia Berhad, Citibank Berhad, EON Bank Berhad, Public Bank Berhad, OCBC Bank (Malaysia) Berhad, Maybank, dan others. This study is focus on the efficiency and profitability of Islamic bank in Malaysia. This study was conducted on 9 bank in Malaysia which also implementing the Islamic Banking system in each branch. Among the 9 banks in this study were Bank Islam Malaysia Berhad (BIMB), Bank Muamalat Malaysia Berhad, Alliance Islamic Bank Berhad, EONCAP Islamic Bank Berhad, HSBC Amanah Malaysia Berhad, Malayan Islamic Banking (Maybank), OCBC Bank Al-Amin, Public Bank Berhad dan RHB Islamic Bank Berhad. The methodology that use in this study is descriptive analysis and econometric methods using data from annual reports of the banks. This study focuses more on efficiency and profitability at Islamic Banks. These results indicate that there are many differences in the efficiency and profitability of the bank's Islamic banking system is implemented either in the way of banking operations, products and services, achievements and many others. In addition, according to this study found that there weaknesses in the system of Islamic banking in Malaysia and should be repaired in order to continue to compete with conventional banking at this time. So, several proposals have been submitted to Islamic banking in Malaysia in order to correct these weaknesses as well as aim to encourage people to make transactions based on Islamic banking.
format Thesis
qualification_name masters
qualification_level Master's degree
author Nor Ermawati, Hussain
author_facet Nor Ermawati, Hussain
author_sort Nor Ermawati, Hussain
title Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia
title_short Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia
title_full Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia
title_fullStr Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia
title_full_unstemmed Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia
title_sort efficiency and profitability of islamic bank : case study of 9 banks in malaysia
granting_institution Universiti Utara Malaysia
granting_department College of Arts and Sciences (CAS)
publishDate 2011
url https://etd.uum.edu.my/3686/1/s805011.pdf
_version_ 1747827626039312384
spelling my-uum-etd.36862016-04-27T07:26:09Z Efficiency and Profitability of Islamic Bank : Case Study of 9 Banks in Malaysia 2011 Nor Ermawati, Hussain Abdullah, Hussin College of Arts and Sciences (CAS) College of Arts and Sciences HG Finance Islamic banking system is a field that an interesting to study because this system is based on Islamic law, while the conventional system is based on riba. Islamic banks almost have a competition from conventional banks that have grown rapidly over the last 20 years ago. There are many of the conventional banks in Malaysia such as Affin Bank Berhad, Alliance Bank Malaysia Berhad, Citibank Berhad, EON Bank Berhad, Public Bank Berhad, OCBC Bank (Malaysia) Berhad, Maybank, dan others. This study is focus on the efficiency and profitability of Islamic bank in Malaysia. This study was conducted on 9 bank in Malaysia which also implementing the Islamic Banking system in each branch. Among the 9 banks in this study were Bank Islam Malaysia Berhad (BIMB), Bank Muamalat Malaysia Berhad, Alliance Islamic Bank Berhad, EONCAP Islamic Bank Berhad, HSBC Amanah Malaysia Berhad, Malayan Islamic Banking (Maybank), OCBC Bank Al-Amin, Public Bank Berhad dan RHB Islamic Bank Berhad. The methodology that use in this study is descriptive analysis and econometric methods using data from annual reports of the banks. This study focuses more on efficiency and profitability at Islamic Banks. These results indicate that there are many differences in the efficiency and profitability of the bank's Islamic banking system is implemented either in the way of banking operations, products and services, achievements and many others. In addition, according to this study found that there weaknesses in the system of Islamic banking in Malaysia and should be repaired in order to continue to compete with conventional banking at this time. So, several proposals have been submitted to Islamic banking in Malaysia in order to correct these weaknesses as well as aim to encourage people to make transactions based on Islamic banking. 2011 Thesis https://etd.uum.edu.my/3686/ https://etd.uum.edu.my/3686/1/s805011.pdf text eng validuser masters masters Universiti Utara Malaysia Abd Elrhman Elzani Saaid, Saiful Azhar Rosly, Mansor H. Ibrahim & Naziruddin Abdullah. (2003). The X-Efficiency of the Sudanese Islamic Banks. IIUM Journal of Economics and Management 11, no.2 Abdel-Hameed M. Bashir. (1999). Risk and Profitability Measures in Islamic Banks: The Case of Two Sudanese Banks. Islamic Economic Studies Vol. 6 Abdel-Hameed M.Bashir. (2003).Determinants of Profitability in Islamic Banks: Some Evidence from the Middle East. Islamic Studies. Vol.11, no.1 Abdul Halim Ismail. (2004). Workshop on Islamic banking and finance. Institut kefahaman Islam Malaysia (IKIM); Kuala Lumpur. Abdus Samad. (2004). 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Performance and Risk Analysis of the Islamic Banks: The Case of Bahrain Islamic Bank. J. KAU: Islamic Econ, vol.8, pp.3-14. Thurgadevi Sathasivam. (2006). Keberkesanan Perbankan Islam dalam menjana Tabungan di Malaysia (1998-2003). Sintok; Universiti Utara Malaysia. Wan Hartini Wan Ngah. (2004). Sistem kewangan Islam di Malaysia. Sintok; Universiti Utara Malaysia. Zulkefly Abdul Karim, Aminudin Mokhtar, & Mohd. Azlan Shah Zaidi. (2004). Hubungan antara kadar pulangan nominal dengan permintaan deposit sistem Perbankan islam di Malaysia. Jurnal Ekonomi Malaysia. Vol.38, m.s 3-27. Annual Report of Bank Islam Malaysia Berhad served on 31st July 2010 at www.bimb.com.my Annual Report of Bank Muamalat Malaysia Berhad served on 31st July 2010 at www.muamalat.com.my Annual Report of Alliance Islamic Bank Berhad served on 31st July 2010 at www.alliancebank.com.my Annual Report of EONCAP Islamic Bank Berhad served on 31st July 2010 at www.eonbank.com.my Annual Report of HSBC Amanah Malaysia Berhad served on 31st July 2010 at www.hsbc.com.my Annual Report of Malayan Islam Banking (Maybank) served on 31st July 2010 at www.maybank.com.my Annual Report of OCBC Bank Al-Amin served on 31st July 2010 at www.ocbc.com.my Annual Report of HSBC Amanah Malaysia Berhad served on 31st July 2010 at www.hsbc.com.my Annual Report of RHB Islamic Bank Berhad served on 31st July 2010 at www.rhbbank.com.my Report of Bank Negara Malaysia served on 31st July 2010 at www.bnm.com.my Banking information served on 31st July 2010 at www.bankinginfo.com.my

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