The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli

Using central bank data of nine (9) years timeframe, this research intends to investigate the impact of bank-specific characteristics on Islamic banks‟ profits, during the period 2001 to 2009. The bank level data are obtained straightly from Bank Negara Malaysia database. This study employs regressi...

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Main Author: Rusli, Raimi
Format: Student Project
Language:English
Published: 2010
Subjects:
Online Access:http://ir.uitm.edu.my/id/eprint/30602/1/30602.pdf
http://ir.uitm.edu.my/id/eprint/30602/
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spelling my.uitm.ir.306022020-07-02T03:20:00Z http://ir.uitm.edu.my/id/eprint/30602/ The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli Rusli, Raimi Special classes of banks and financial institutions Profits. Corporate profits Finance, Islamic Using central bank data of nine (9) years timeframe, this research intends to investigate the impact of bank-specific characteristics on Islamic banks‟ profits, during the period 2001 to 2009. The bank level data are obtained straightly from Bank Negara Malaysia database. This study employs regression models that relate bank profitability ratios to various explanatory variables. In this study, one ratio represent profitability measures that are return on assets (ROA), three variables (capital, loan and overhead) are drawn from the conventional banking literature as proxies for bank-specific factors. The results from this study indicate that the main determinants of Islamic bank’s profit are capital and loan, although the loan is negatively correlated to profitability. This study also found a positively significant relationship between profitability measures and capital of Islamic banks but no significant toward overhead. The findings revealed that the determinants of Islamic banks profitability are similar to those of the conventional banks. The similarity of determinants is a strong indicator that many of the tools and techniques used in conventional banking are potentially suitable for an Islamic banking environment. In conclusion, it is hoped that this study could provide not only bank managers, but also to the governments, with a better understanding and a guideline to enhance the financial positions of Islamic banks. This is important since Islamic banks play a vital role in the current global economic crisis. 2010 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/30602/1/30602.pdf Rusli, Raimi (2010) The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli. [Student Project] (Unpublished)
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Special classes of banks and financial institutions
Profits. Corporate profits
Finance, Islamic
spellingShingle Special classes of banks and financial institutions
Profits. Corporate profits
Finance, Islamic
Rusli, Raimi
The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli
description Using central bank data of nine (9) years timeframe, this research intends to investigate the impact of bank-specific characteristics on Islamic banks‟ profits, during the period 2001 to 2009. The bank level data are obtained straightly from Bank Negara Malaysia database. This study employs regression models that relate bank profitability ratios to various explanatory variables. In this study, one ratio represent profitability measures that are return on assets (ROA), three variables (capital, loan and overhead) are drawn from the conventional banking literature as proxies for bank-specific factors. The results from this study indicate that the main determinants of Islamic bank’s profit are capital and loan, although the loan is negatively correlated to profitability. This study also found a positively significant relationship between profitability measures and capital of Islamic banks but no significant toward overhead. The findings revealed that the determinants of Islamic banks profitability are similar to those of the conventional banks. The similarity of determinants is a strong indicator that many of the tools and techniques used in conventional banking are potentially suitable for an Islamic banking environment. In conclusion, it is hoped that this study could provide not only bank managers, but also to the governments, with a better understanding and a guideline to enhance the financial positions of Islamic banks. This is important since Islamic banks play a vital role in the current global economic crisis.
format Student Project
author Rusli, Raimi
author_facet Rusli, Raimi
author_sort Rusli, Raimi
title The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli
title_short The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli
title_full The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli
title_fullStr The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli
title_full_unstemmed The bank specific determinants of profitability on Islamic Banking Scheme (IBS) of mainstream banks in Malaysia / Raimi Rusli
title_sort bank specific determinants of profitability on islamic banking scheme (ibs) of mainstream banks in malaysia / raimi rusli
publishDate 2010
url http://ir.uitm.edu.my/id/eprint/30602/1/30602.pdf
http://ir.uitm.edu.my/id/eprint/30602/
_version_ 1685650679728701440
score 13.18916