The performance of Islamic banking in Malaysia. International Journal Academic Research In Business And Social Sciences, 11 (11). pp. 661-672. ISSN 2222-6990 (2021)
Abstract
The aim of this research is to determine the financial performance of Islamic banking in Malaysia. The research is performed by analyzing return on asset (ROA) and return on equity (ROE) as dependent variables to see the relationship between bank size, risk management and gross domestic product (GDP) as independent variables to the bank. Information for this analysis was collected from related databases and annual reports. This study uses secondary data from top three (3) Islamic banks in Malaysia between the years 2011 to 2020 which are Maybank Islamic Berhad, CIMB Islamic Bank Berhad and Bank Islam Malaysia Berhad. The balanced panel data is regressed using the Pooled Ordinary Least Square Model. Bank size shows insignificant value because it indicates that small banks performed better compared to the big one. Risk management shows the same result when an increase in debt is connected with higher credit risk due to higher possibility of uncollectible sums owed. GDP shows insignificant results because some clients are unable to retain and hold earnings for a lengthy period caused by regulatory limitations, less business activity and charged less proportion of tax. The findings show these variables do not have a major impact on banking profitability.
| Item Type: | Article |
|---|---|
| Keywords: | Islamic banking, Credit risk, Bank size, GDP, ROA and ROE |
| Taxonomy: | By Niche > Islamic Banking > Banks and Banking > Data Processing By Niche > Islamic Banking > Banks and Banking > Finance By Niche > Islamic Banking > Banks and Banking > Security Measures |
| Local Content Hub: | Niche > Islamic Banking |
| Depositing User: | Ilya Nur Fateen Othman |
| Date Deposited: | 11 Jul 2023 07:45 |
| Last Modified: | 11 Jul 2023 07:45 |
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