Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study

This paper has analyzed and compared the financial performance of Islamic banks and conventional banks in Malaysia. This study is useful for depositors, bank managers, shareholders, investors, regulators and researchers in order to provide a true picture of Islamic banks and conventional banks fin...

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Main Author:	Nor Baayah, Idris
Format:	Thesis
Language:	eng eng
Published:	2014
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/4699/1/s810231.pdf https://etd.uum.edu.my/4699/2/s810231_abstract.pdf
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id	my-uum-etd.4699
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Mazlan, Ahmad Rizal
topic	HG Finance
spellingShingle	HG Finance Nor Baayah, Idris Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study
description	This paper has analyzed and compared the financial performance of Islamic banks and conventional banks in Malaysia. This study is useful for depositors, bank managers, shareholders, investors, regulators and researchers in order to provide a true picture of Islamic banks and conventional banks financial condition. Study has been conducted in term of profitability, liquidity, risk and solvency and efficiency for five years period from 2008 to 2012. Study was taken only for five years period due to some of Islamic banks chosen was just started the operation e.g. CIMB Islamic (2003), Maybank Islamic (2008) and AmIslamic (2006). Data had been generated from income statement, balance sheet and notes to the accounts of the banks’ annual reports. The sources of banks’ annual reports are from the websites of the banks and also Bloomberg. This study had selected six Islamic banks and six conventional banks established in Malaysia, which includes Bank Islam (M) Berhad, Bank Muamalat (M) Berhad, Bank Kerjasama Rakyat (M) Berhad, Maybank Islamic Berhad, CIMB Islamic Bank Berhad, AmIslamic Bank Berhad, Affin Bank Berhad, CIMB Bank Berhad, Malayan Banking Berhad, Ambank (M) Berhad, HSBC Bank (M) Berhad and Hong Leong Bank Berhad. The list of conventional banks and Islamic banks is obtained from Bank Negara Malaysia’s (BNM) website. The significant of data has been determined using independent sample t-test and one-way ANOVA analysis. Study has concluded that Islamic banks are less profitable, less liquid, more risky but more efficient in managing the operating expenses to generate revenue as compared conventional banks.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Nor Baayah, Idris
author_facet	Nor Baayah, Idris
author_sort	Nor Baayah, Idris
title	Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study
title_short	Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study
title_full	Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study
title_fullStr	Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study
title_full_unstemmed	Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study
title_sort	financial performance of islamic banks and conventional banks in malaysia: a comparative study
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2014
url	https://etd.uum.edu.my/4699/1/s810231.pdf https://etd.uum.edu.my/4699/2/s810231_abstract.pdf
_version_	1747827783463075840
spelling	my-uum-etd.46992016-04-17T04:27:18Z Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study 2014 Nor Baayah, Idris Mazlan, Ahmad Rizal Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This paper has analyzed and compared the financial performance of Islamic banks and conventional banks in Malaysia. This study is useful for depositors, bank managers, shareholders, investors, regulators and researchers in order to provide a true picture of Islamic banks and conventional banks financial condition. Study has been conducted in term of profitability, liquidity, risk and solvency and efficiency for five years period from 2008 to 2012. Study was taken only for five years period due to some of Islamic banks chosen was just started the operation e.g. CIMB Islamic (2003), Maybank Islamic (2008) and AmIslamic (2006). Data had been generated from income statement, balance sheet and notes to the accounts of the banks’ annual reports. The sources of banks’ annual reports are from the websites of the banks and also Bloomberg. This study had selected six Islamic banks and six conventional banks established in Malaysia, which includes Bank Islam (M) Berhad, Bank Muamalat (M) Berhad, Bank Kerjasama Rakyat (M) Berhad, Maybank Islamic Berhad, CIMB Islamic Bank Berhad, AmIslamic Bank Berhad, Affin Bank Berhad, CIMB Bank Berhad, Malayan Banking Berhad, Ambank (M) Berhad, HSBC Bank (M) Berhad and Hong Leong Bank Berhad. The list of conventional banks and Islamic banks is obtained from Bank Negara Malaysia’s (BNM) website. The significant of data has been determined using independent sample t-test and one-way ANOVA analysis. Study has concluded that Islamic banks are less profitable, less liquid, more risky but more efficient in managing the operating expenses to generate revenue as compared conventional banks. 2014 Thesis https://etd.uum.edu.my/4699/ https://etd.uum.edu.my/4699/1/s810231.pdf text eng validuser https://etd.uum.edu.my/4699/2/s810231_abstract.pdf text eng public masters masters Universiti Utara Malaysia Al-Mahfuz, SS. (2012). “A Comparative Study of Profitability Between Islamic Banks and Conventional Banks In The Context of Bangladesh”. Retrieved from: www.sb.iub.edu.bd/ internship/Summer2012/0820535.pdf. Ansari, S., & Rehman,A. (2011). “Financial Performance of Islamic and Conventional Banks in Pakistan: A Comparative Study”, International Conference on Islamic Economics and Finance. Ansari, S., & Rehman, K.U. (2011). “Comparative Financial Performance of Existing Islamic Banks and Contemporary Conventional Bank Pakistan”, International Conference on Economics, Business and Management. 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Financial performance of Islamic banks and conventional banks in Malaysia: A comparative study

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