Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia

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Main Authors: Muda M., Shaharuddin A., Embaya A.
Other Authors: Universiti Sains Islam Malaysia (USIM)
Format: journal::journal article
Language:English
en_US
Published: Econjournals 2024
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author Muda M.
Shaharuddin A.
Embaya A.
author2 Universiti Sains Islam Malaysia (USIM)
author_facet Universiti Sains Islam Malaysia (USIM)
Muda M.
Shaharuddin A.
Embaya A.
author_sort Muda M.
building USIM Library
collection Institutional Repository
content_provider Universiti Sains Islam Malaysia
content_source USIM Institutional Repository
continent Asia
country Malaysia
description Indexed by Scopus
format text::journal::journal article
id my.usim.oarep-10121
institution Universiti Sains Islam Malaysia
language English
en_US
publishDate 2024
publisher Econjournals
record_format dspace
spelling my.usim.oarep-101212026-01-19T07:36:56Z Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia Muda M. Shaharuddin A. Embaya A. Universiti Sains Islam Malaysia (USIM) Bank profitability Domestic and Foreign Islamic Banks Financial crisis Malaysia Indexed by Scopus This paper is conducted to compare the determinants of profitability of the domestic and foreign Islamic banks operating in Malaysia. The Generalized Least Square (GLS) is employed with unbalanced panel data on seventeen Islamic banks, using quarterly data for the period of 2007 to 2010. In order to find out the differences in the profitability determinants, the sample of banks is divided into two sub-samples (domestic and foreign). The results reveal that domestic Islamic banks are more profitable than foreign Islamic banks. The results also show that the profitability determinants of domestic banks are different from those of foreign banks. The overhead expenses, loans, efficiency, gross domestic product growth rate and bank size have a significant effect in determining banks profitability, in which case applicable to the domestic banks only. In turn, the gross domestic product per capita has a significant effect in determining banks profitability of only the foreign banks. The study finds that, deposits, capital and reserves, inflation and banks age have a significant effect in determining banks profitability of both domestic and foreign banks. Meanwhile, liquidity and concentration are not able to explain the variability of domestic and foreign Islamic banks profitability. The findings indicate that the profitability of domestic banks is affected by the global financial crisis while, the profitability of foreign banks is not affected. Final 2024-05-29T02:00:27Z 2024-05-29T02:00:27Z 2013 text::journal::journal article 21464138 2-s2.0-84979802572 https://www.scopus.com/inward/record.uri?eid=2-s2.0-84979802572&partnerID=40&md5=6b1b2ec0e643eb492d74305d32338e0f https://oarep.usim.edu.my/handle/123456789/10121 569 599 3 3 English en_US International Journal of Economics and Financial Issues application/pdf Econjournals Scopus
spellingShingle Bank profitability
Domestic and Foreign Islamic Banks
Financial crisis
Malaysia
Muda M.
Shaharuddin A.
Embaya A.
Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia
title Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia
title_full Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia
title_fullStr Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia
title_full_unstemmed Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia
title_short Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia
title_sort comparative analysis of profitability determinants of domestic and foreign islamic banks in malaysia
topic Bank profitability
Domestic and Foreign Islamic Banks
Financial crisis
Malaysia
url_provider http://oarep.usim.edu.my/