Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks
This study evaluates the performance of Islamic banks and analyzes the determinants of their profitability and performance as measured by return on assets (ROA), return on equity (ROE) and profit margin (PM). Using financial ratios as a proxy for internal bank characteristics, and utilizing bank le...
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| Format: | Thesis |
| Language: | en en |
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2008
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| Online Access: | https://etd.uum.edu.my/219/1/Yaman_Hajja.pdf https://etd.uum.edu.my/219/2/Yaman_Hajja.pdf https://etd.uum.edu.my/219/ |
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| _version_ | 1833435342400651264 |
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| author | Hajja, Yaman |
| author_facet | Hajja, Yaman |
| author_sort | Hajja, Yaman |
| building | UUM Library |
| collection | Institutional Repository |
| content_provider | Universiti Utara Malaysia |
| content_source | UUM Electronic Theses |
| continent | Asia |
| country | Malaysia |
| description | This study evaluates the performance of Islamic banks and analyzes the determinants of their profitability and performance as measured by return on assets (ROA), return
on equity (ROE) and profit margin (PM). Using financial ratios as a proxy for internal bank characteristics, and utilizing bank level data, this study examines the performance indicators of foreign and domestic Islamic banks in Malaysia during 2006-2007. Regression results show that Islamic bank profitability measures respond
positively to total core deposits, and total assets; and negatively to capital adequacy ratio. Ratios of operating expenses to assets and financing provisions to total
financing positively affect Islamic bank's ROE and PM, while negatively affect ROA. Regression and correlation results reveal no significant relationship between the type
of Islamic bank(foreign or domestic) and the profitability measures. The t-test for equality of means results shows that domestic Islamic banks are more profitable and
more efficient, but riskier and less liquid than foreign Islamic banks. Asset quality indicators for foreign Islamic banks are better than those of domestic Islamic banks. |
| format | Thesis |
| id | my.uum.etd-219 |
| institution | Universiti Utara Malaysia |
| language | en en |
| publishDate | 2008 |
| record_format | eprints |
| spelling | my.uum.etd-2192013-07-24T12:06:10Z https://etd.uum.edu.my/219/ Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks Hajja, Yaman HG Finance This study evaluates the performance of Islamic banks and analyzes the determinants of their profitability and performance as measured by return on assets (ROA), return on equity (ROE) and profit margin (PM). Using financial ratios as a proxy for internal bank characteristics, and utilizing bank level data, this study examines the performance indicators of foreign and domestic Islamic banks in Malaysia during 2006-2007. Regression results show that Islamic bank profitability measures respond positively to total core deposits, and total assets; and negatively to capital adequacy ratio. Ratios of operating expenses to assets and financing provisions to total financing positively affect Islamic bank's ROE and PM, while negatively affect ROA. Regression and correlation results reveal no significant relationship between the type of Islamic bank(foreign or domestic) and the profitability measures. The t-test for equality of means results shows that domestic Islamic banks are more profitable and more efficient, but riskier and less liquid than foreign Islamic banks. Asset quality indicators for foreign Islamic banks are better than those of domestic Islamic banks. 2008-11 Thesis NonPeerReviewed application/pdf en https://etd.uum.edu.my/219/1/Yaman_Hajja.pdf application/pdf en https://etd.uum.edu.my/219/2/Yaman_Hajja.pdf Hajja, Yaman (2008) Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks. Masters thesis, Universiti Utara Malaysia. |
| spellingShingle | HG Finance Hajja, Yaman Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks |
| title | Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks |
| title_full | Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks |
| title_fullStr | Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks |
| title_full_unstemmed | Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks |
| title_short | Evaluation of Islamic Banks' Performance in Malaysia: Foreign Vs Domestic Banks |
| title_sort | evaluation of islamic banks' performance in malaysia: foreign vs domestic banks |
| topic | HG Finance |
| url | https://etd.uum.edu.my/219/1/Yaman_Hajja.pdf https://etd.uum.edu.my/219/2/Yaman_Hajja.pdf https://etd.uum.edu.my/219/ |
| url_provider | http://etd.uum.edu.my/ |