Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia

The Malaysian Islamic banking industry has recorded the declining on their profitability performance for both Local and Foreign Islamic banks since past few years. These decreasing might emerge from various external and internal environment forces of lslamic banks. The main objective of this study...

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Main Author:	Salmiah, Suliman
Format:	Thesis
Language:	eng eng eng
Published:	2018
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/8462/1/s822554_01.pdf https://etd.uum.edu.my/8462/2/s822554_02.pdf https://etd.uum.edu.my/8462/3/s822554%20references.docx
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id	my-uum-etd.8462
record_format	uketd_dc
spelling	my-uum-etd.84622021-07-19T08:26:48Z Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia 2018 Salmiah, Suliman Md Tahir, Raziah Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance The Malaysian Islamic banking industry has recorded the declining on their profitability performance for both Local and Foreign Islamic banks since past few years. These decreasing might emerge from various external and internal environment forces of lslamic banks. The main objective of this study is to identify the determinants that could influence the Local Islamic banks and Foreign Islamic bank's profitability in Malaysia. The dependent variable used in this study is Return on Asset (ROA) meanwhile the independent variables consists of external and internal determinants which are Gross Domestic Products (GDP) and Inflation (INF) for external determinants and Capital Adequacy Ratio (CAR), Asset Quality Ratio (ASQ), Liquidity Ratio (LQR) as well as Bank Size (SIZE) for internal determinants. The study employed balance panel data on 16 Islamic banks in Malaysia which consists of 10 Local Islamic banks (70 observations) and 6 Foreign Islamic banks (42 observations) over the period of2010 until 2016. The study found that external and internal determinants, namely GDP, INF, and CAR have a significant impact on the of Local Islamic bank's profitability in Malaysia. Meanwhile, for the Foreign Islamic banks in Malaysia, the external and internal determinants namely INF, CAR, ASQ, and SIZE are significant toward their profitability. The findings from this study could provide a comprehensive analysis on the profitability determinants that could influence the profitability of the Local Islamic banks and Foreign Islamic banks in Malaysia. The findings also could contribute the valuable information as an essential guide to the Islamic bank's management team to evaluate the bank profitability in Malaysia. 2018 Thesis https://etd.uum.edu.my/8462/ https://etd.uum.edu.my/8462/1/s822554_01.pdf text eng public https://etd.uum.edu.my/8462/2/s822554_02.pdf text eng public https://etd.uum.edu.my/8462/3/s822554%20references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Md Tahir, Raziah
topic	HG Finance
spellingShingle	HG Finance Salmiah, Suliman Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia
description	The Malaysian Islamic banking industry has recorded the declining on their profitability performance for both Local and Foreign Islamic banks since past few years. These decreasing might emerge from various external and internal environment forces of lslamic banks. The main objective of this study is to identify the determinants that could influence the Local Islamic banks and Foreign Islamic bank's profitability in Malaysia. The dependent variable used in this study is Return on Asset (ROA) meanwhile the independent variables consists of external and internal determinants which are Gross Domestic Products (GDP) and Inflation (INF) for external determinants and Capital Adequacy Ratio (CAR), Asset Quality Ratio (ASQ), Liquidity Ratio (LQR) as well as Bank Size (SIZE) for internal determinants. The study employed balance panel data on 16 Islamic banks in Malaysia which consists of 10 Local Islamic banks (70 observations) and 6 Foreign Islamic banks (42 observations) over the period of2010 until 2016. The study found that external and internal determinants, namely GDP, INF, and CAR have a significant impact on the of Local Islamic bank's profitability in Malaysia. Meanwhile, for the Foreign Islamic banks in Malaysia, the external and internal determinants namely INF, CAR, ASQ, and SIZE are significant toward their profitability. The findings from this study could provide a comprehensive analysis on the profitability determinants that could influence the profitability of the Local Islamic banks and Foreign Islamic banks in Malaysia. The findings also could contribute the valuable information as an essential guide to the Islamic bank's management team to evaluate the bank profitability in Malaysia.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Salmiah, Suliman
author_facet	Salmiah, Suliman
author_sort	Salmiah, Suliman
title	Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia
title_short	Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia
title_full	Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia
title_fullStr	Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia
title_full_unstemmed	Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia
title_sort	comparative analysis on the profitability determinants of local and foreign islamic banks in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2018
url	https://etd.uum.edu.my/8462/1/s822554_01.pdf https://etd.uum.edu.my/8462/2/s822554_02.pdf https://etd.uum.edu.my/8462/3/s822554%20references.docx
_version_	1747828398200193024

Comparative analysis on the profitability determinants of local and foreign Islamic banks in Malaysia

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