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Intermediary role performance analysis of Malaysian Islamic and conventional banks

The objective of this paper is to investigate the effect of bank specific characteristics and macroeconomics variables on bank margin (NIM) which reflects the intermediary role of Islamic and conventional banks in Malaysia for the period of 2006 to 2014. By using static panel analysis, the resul...

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Main Authors: Fauzias Mat Nor,, Amir Shaharuddin,, Norhaziah Nawai,, Ainulashikin Marzuki,, W Zainuddin Wan Abdullah,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/20403/1/19050-102252-1-PB.pdf
http://journalarticle.ukm.my/20403/
https://ejournal.ukm.my/pengurusan/issue/view/1131
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spelling my-ukm.journal.204032022-11-07T07:45:47Z http://journalarticle.ukm.my/20403/ Intermediary role performance analysis of Malaysian Islamic and conventional banks Fauzias Mat Nor, Amir Shaharuddin, Norhaziah Nawai, Ainulashikin Marzuki, W Zainuddin Wan Abdullah, The objective of this paper is to investigate the effect of bank specific characteristics and macroeconomics variables on bank margin (NIM) which reflects the intermediary role of Islamic and conventional banks in Malaysia for the period of 2006 to 2014. By using static panel analysis, the results show that management efficiency is positively related to the bank margin for both Islamic and conventional banks. For Islamic banks, bank size and liquidity ratio have significant negative relationship on bank margin. The default risk is positively related to bank margin for Islamic banks. As for conventional bank, the non interest to total asset ratio has significant positive relationship on bank margin. Therefore, the results show that there are similarities and differences in terms of determinant factors that affect the bank margin between Islamic banks and conventional banks. These empirical results suggest an important policy on issues pertaining to how Islamic and conventional banks have to adjust the changes in the banking environment. The conventional banks have more comparative advantages specifically on management efficiency as its intermediary role performance is also not affected by size. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/20403/1/19050-102252-1-PB.pdf Fauzias Mat Nor, and Amir Shaharuddin, and Norhaziah Nawai, and Ainulashikin Marzuki, and W Zainuddin Wan Abdullah, (2018) Intermediary role performance analysis of Malaysian Islamic and conventional banks. Jurnal Pengurusan, 53 . pp. 93-105. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1131
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The objective of this paper is to investigate the effect of bank specific characteristics and macroeconomics variables on bank margin (NIM) which reflects the intermediary role of Islamic and conventional banks in Malaysia for the period of 2006 to 2014. By using static panel analysis, the results show that management efficiency is positively related to the bank margin for both Islamic and conventional banks. For Islamic banks, bank size and liquidity ratio have significant negative relationship on bank margin. The default risk is positively related to bank margin for Islamic banks. As for conventional bank, the non interest to total asset ratio has significant positive relationship on bank margin. Therefore, the results show that there are similarities and differences in terms of determinant factors that affect the bank margin between Islamic banks and conventional banks. These empirical results suggest an important policy on issues pertaining to how Islamic and conventional banks have to adjust the changes in the banking environment. The conventional banks have more comparative advantages specifically on management efficiency as its intermediary role performance is also not affected by size.
format Article
author Fauzias Mat Nor,
Amir Shaharuddin,
Norhaziah Nawai,
Ainulashikin Marzuki,
W Zainuddin Wan Abdullah,
spellingShingle Fauzias Mat Nor,
Amir Shaharuddin,
Norhaziah Nawai,
Ainulashikin Marzuki,
W Zainuddin Wan Abdullah,
Intermediary role performance analysis of Malaysian Islamic and conventional banks
author_facet Fauzias Mat Nor,
Amir Shaharuddin,
Norhaziah Nawai,
Ainulashikin Marzuki,
W Zainuddin Wan Abdullah,
author_sort Fauzias Mat Nor,
title Intermediary role performance analysis of Malaysian Islamic and conventional banks
title_short Intermediary role performance analysis of Malaysian Islamic and conventional banks
title_full Intermediary role performance analysis of Malaysian Islamic and conventional banks
title_fullStr Intermediary role performance analysis of Malaysian Islamic and conventional banks
title_full_unstemmed Intermediary role performance analysis of Malaysian Islamic and conventional banks
title_sort intermediary role performance analysis of malaysian islamic and conventional banks
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2018
url http://journalarticle.ukm.my/20403/1/19050-102252-1-PB.pdf
http://journalarticle.ukm.my/20403/
https://ejournal.ukm.my/pengurusan/issue/view/1131
_version_ 1751537457283727360
score 13.211869

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