The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence

Ijarah or Leasing becomes one of the most important financing schemes provided by banking institutions to meet the substantive demand from the private and household sectors. The Ijarah financing is mode of financing of Islamic banks offered to the customers and it is the second largest financing of...

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Main Author:	Mohamud Said, Yusuf
Format:	Thesis
Language:	eng eng eng
Published:	2019
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/8523/1/S823627_01.pdf https://etd.uum.edu.my/8523/2/S823627_02.pdf https://etd.uum.edu.my/8523/3/s823627_references.docx
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id	my-uum-etd.8523
record_format	uketd_dc
spelling	my-uum-etd.85232022-08-08T06:58:19Z The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence 2019 Mohamud Said, Yusuf Isa, Mohamad Yazid Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Ijarah or Leasing becomes one of the most important financing schemes provided by banking institutions to meet the substantive demand from the private and household sectors. The Ijarah financing is mode of financing of Islamic banks offered to the customers and it is the second largest financing of Islamic banks in Malaysia after Murabahah. This study investigates the impact of Ijarah financing of Islamic bank performance in Malaysia. The performance of Islamic banks is measured by return on assets (ROA) and net profit margin (NPM) as dependent variables. This study uses seven (7) independent variables which are divided into two main divisions bank specific and macroeconomic factors. Bank specific factors are factors that can control by Islamic banks and these comprises operating efficiency (EXTA), bank size (LTA), total Ijarah financing (IJTA) and total financing (TFTA) while macroeconomic factors refer to factors that are beyond ability of the Islamic banks and these includes base lending rate (BLR) or Base financing rate (BFR), consumer price index (CPI) and gross domestic product (GDP). The data is limited to the Islamic banks in Malaysia within the period of 2004 until 2018. This study analyses using Random effect models. The results show that Ijarah financing has a positive and significant effect on net profit margin as proxy of Islamic banks performance. However, the Ijarah financing has positive but no significant influence on return on as assets as proxy of Islamic banks performance. The findings suggest Islamic banks to increase the portfolio of Ijarah financing in order to raise up the performance of the Islamic banks. Also, this study has strongly contributed in the existing literature of single country analysis of Islamic banks particularly in the context of Malaysia. 2019 Thesis https://etd.uum.edu.my/8523/ https://etd.uum.edu.my/8523/1/S823627_01.pdf text eng public https://etd.uum.edu.my/8523/2/S823627_02.pdf text eng public https://etd.uum.edu.my/8523/3/s823627_references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Isa, Mohamad Yazid
topic	HG Finance
spellingShingle	HG Finance Mohamud Said, Yusuf The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence
description	Ijarah or Leasing becomes one of the most important financing schemes provided by banking institutions to meet the substantive demand from the private and household sectors. The Ijarah financing is mode of financing of Islamic banks offered to the customers and it is the second largest financing of Islamic banks in Malaysia after Murabahah. This study investigates the impact of Ijarah financing of Islamic bank performance in Malaysia. The performance of Islamic banks is measured by return on assets (ROA) and net profit margin (NPM) as dependent variables. This study uses seven (7) independent variables which are divided into two main divisions bank specific and macroeconomic factors. Bank specific factors are factors that can control by Islamic banks and these comprises operating efficiency (EXTA), bank size (LTA), total Ijarah financing (IJTA) and total financing (TFTA) while macroeconomic factors refer to factors that are beyond ability of the Islamic banks and these includes base lending rate (BLR) or Base financing rate (BFR), consumer price index (CPI) and gross domestic product (GDP). The data is limited to the Islamic banks in Malaysia within the period of 2004 until 2018. This study analyses using Random effect models. The results show that Ijarah financing has a positive and significant effect on net profit margin as proxy of Islamic banks performance. However, the Ijarah financing has positive but no significant influence on return on as assets as proxy of Islamic banks performance. The findings suggest Islamic banks to increase the portfolio of Ijarah financing in order to raise up the performance of the Islamic banks. Also, this study has strongly contributed in the existing literature of single country analysis of Islamic banks particularly in the context of Malaysia.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Mohamud Said, Yusuf
author_facet	Mohamud Said, Yusuf
author_sort	Mohamud Said, Yusuf
title	The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence
title_short	The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence
title_full	The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence
title_fullStr	The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence
title_full_unstemmed	The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence
title_sort	impact of ijarah financing/leasing on islamic bank performance in malaysia: empirical evidence
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2019
url	https://etd.uum.edu.my/8523/1/S823627_01.pdf https://etd.uum.edu.my/8523/2/S823627_02.pdf https://etd.uum.edu.my/8523/3/s823627_references.docx
_version_	1747828406796419072

The impact of Ijarah financing/leasing on Islamic bank performance in Malaysia: empirical evidence

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