Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia

Financial stability is very crucial for every financial institutions 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 financia...

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Main Author:	Anis Atikah, Abdul Aziz
Format:	Thesis
Language:	eng eng eng
Published:	2019
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/8813/1/S822914_01.pdf https://etd.uum.edu.my/8813/2/S822914_02.pdf https://etd.uum.edu.my/8813/3/s822914_references.docx
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id	my-uum-etd.8813
record_format	uketd_dc
spelling	my-uum-etd.88132022-04-10T23:49:06Z Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia 2019 Anis Atikah, Abdul Aziz Mat Nor, Alias Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Financial stability is very crucial for every financial institutions 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 bank specific variables and macroeconomic factors such as Liquidity Ratio (LIQR), Profitability (PROFIT), Asset Quality Ratio (AQR), Capital Ratio (CAP), Gross Domestic Product (GDP), Inflation Rate (INF), Unemployment Rate (UNR), and Money Supply (M2) on the Financial Stability of Islamic banks and Conventional banks in Malaysia. By using E-Views 8 software, the data obtained from the year 2009 until 2017 then is evaluated and interpreted. The Multiple Regression Analysis was conducted in order to examine the factors that influencing the financial stability of the banks in Malaysia. The findings from this study revealed that only two variables were found to be significant with the financial stability of Islamic banks which are CAP and GDP. While there are six variables were found to be significant with the financial stability of Conventional banks which are PROFIT, AQR, CAP, GDP, INF and UNR. From these results, it was proved that Islamic banks are able to withstand from economy crisis as INF, UNR and M2 were found not significant with financial stability of Islamic banks. Meanwhile, conventional banks are highly affected with economy crisis since GDP, INF and UNR were found to be significant with its financial stability. 2019 Thesis https://etd.uum.edu.my/8813/ https://etd.uum.edu.my/8813/1/S822914_01.pdf text eng public https://etd.uum.edu.my/8813/2/S822914_02.pdf text eng public https://etd.uum.edu.my/8813/3/s822914_references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Mat Nor, Alias
topic	HG Finance
spellingShingle	HG Finance Anis Atikah, Abdul Aziz Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia
description	Financial stability is very crucial for every financial institutions 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 bank specific variables and macroeconomic factors such as Liquidity Ratio (LIQR), Profitability (PROFIT), Asset Quality Ratio (AQR), Capital Ratio (CAP), Gross Domestic Product (GDP), Inflation Rate (INF), Unemployment Rate (UNR), and Money Supply (M2) on the Financial Stability of Islamic banks and Conventional banks in Malaysia. By using E-Views 8 software, the data obtained from the year 2009 until 2017 then is evaluated and interpreted. The Multiple Regression Analysis was conducted in order to examine the factors that influencing the financial stability of the banks in Malaysia. The findings from this study revealed that only two variables were found to be significant with the financial stability of Islamic banks which are CAP and GDP. While there are six variables were found to be significant with the financial stability of Conventional banks which are PROFIT, AQR, CAP, GDP, INF and UNR. From these results, it was proved that Islamic banks are able to withstand from economy crisis as INF, UNR and M2 were found not significant with financial stability of Islamic banks. Meanwhile, conventional banks are highly affected with economy crisis since GDP, INF and UNR were found to be significant with its financial stability.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Anis Atikah, Abdul Aziz
author_facet	Anis Atikah, Abdul Aziz
author_sort	Anis Atikah, Abdul Aziz
title	Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia
title_short	Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia
title_full	Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia
title_fullStr	Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia
title_full_unstemmed	Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia
title_sort	factors influencing financial stability: a comparative study between conventional banks and islamic banks in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2019
url	https://etd.uum.edu.my/8813/1/S822914_01.pdf https://etd.uum.edu.my/8813/2/S822914_02.pdf https://etd.uum.edu.my/8813/3/s822914_references.docx
_version_	1747828466130092032

Factors influencing financial stability: a comparative study between conventional banks and Islamic banks in Malaysia

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