Determinants of Islamic banking performance towards the economic growth in Malaysia / Nor Atiqah Abd Latif

This research aim to study the nature of Malaysia's Islamic bank's performance that is able to develop the economic growth in the country. It is an attempt to add to the existing research by including an objective compromise on the gaps in research findings of economic growth between selec...

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Bibliographic Details
Main Author: Abd Latif, Nor Atiqah
Format: Thesis
Language:English
Published: 2022
Online Access:https://ir.uitm.edu.my/id/eprint/101380/1/101380.pdf
https://ir.uitm.edu.my/id/eprint/101380/
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Summary:This research aim to study the nature of Malaysia's Islamic bank's performance that is able to develop the economic growth in the country. It is an attempt to add to the existing research by including an objective compromise on the gaps in research findings of economic growth between selected Islamic banks. Financial and banking institutions should be managed efficiently and take an important part of the economy and financial performance. Against conventional bank, where dealing with interest is a main product and money is traded as a commodity, Islamic banking is based on real assets and is interest-free. In the meantime, Islamic banking have broadened their financial activities in accordance with Syariah including financing and investment banking, capital markets, takaful, financial advisory, and microfinance. This study carried out panel data regression analysis by 4 determinants of Islamic banking performance (total assets, total financing, total deposits, total zakat) that have been collected within 5 local Islamic banks and tested empirically on Malaysia economic growth (GDP). Within a period of 201 1 and 2020, this secondary data from local Islamic banks was gathered from annual reports, and gross domestic product (GDP) data was obtained from the International Monetary Funds (IMF). Descriptive analysis, correlation analysis, regression analysis, and normality analysis are all used to interpret the findings in this study. The findings will endorse the concept that Islamic banking system strengthens both the economy and the management' competencies and lowers agency costs, all of which have a strong impact on economic growth and contribute to society.