Determinants of the asset structure in Islamic banking : a case in Malaysia

• Main Author: Siti Zulaikha, Azaha
• Format: Final Year Project Report
• Language: English
• Published: Universiti Malaysia Sarawak, (UNIMAS) 2018
• Subjects: H Social Sciences (General); HD Industries. Land use. Labor; HG Finance
• Online Access: http://ir.unimas.my/id/eprint/32323/1/Siti%20Zulaikha%20Azaha%20ft.pdf; http://ir.unimas.my/id/eprint/32323/

The asset management structure in Islamic banking is influenced by internal factors which is the factors that have the most impact on the asset management of Islamic banks. Islamic banking provides more financing to reduce their risk and at the same time they attempt to increase the deposit and investment due to uncertainty in interest rate in conventional banking. Thus, this study aims to investigate the management of asset structures of the Islamic banking sector in the case of Malaysia. The unbalanced panel data from 16 Islamic banks in Malaysia have been taken into account in analysing whether there is a relationship between asset structure management and Islamic banking specific features. These involve the Bank Asset (LASSET), Total Financing (LTF), Total Deposit (LTD) and Profit (ROA) covering the period from 2012 to 2018. The results reveal that the asset management structure is significant for Total Financing (LTF) and Profit (ROA). However, Total Deposit (LTD) is insignificant towards the asset management structure. The findings of this study will help Islamic bank management in their efforts to avoid any unexpected crisis that could affect the banking operations.