Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach
This paper examines the impact of bank-specific and macroeconomic factors upon the profitability performance of Islamic and conventional banks in Malaysia using panel data regression analysis. The sample comprises of seventeen conventional banks and thirteen Islamic banks covering the period of 2005...
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| Format: | Article |
| Language: | English |
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Universiti Teknologi MARA Terengganu
2013
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| Online Access: | http://irep.iium.edu.my/31957/ http://irep.iium.edu.my/31957/1/Terengganu_International_Finance_and_Economics_Journal%2C_3%281%29%2C_pp_1-7%2C_2013.pdf |
| _version_ | 1848780473213386752 |
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| author | Abduh, Muhamad Omar, Mohd. Azmi Mesic, Edina |
| author_facet | Abduh, Muhamad Omar, Mohd. Azmi Mesic, Edina |
| author_sort | Abduh, Muhamad |
| building | IIUM Repository |
| collection | Online Access |
| description | This paper examines the impact of bank-specific and macroeconomic factors upon the profitability performance of Islamic and conventional banks in Malaysia using panel data regression analysis. The sample comprises of seventeen conventional banks and thirteen Islamic banks covering the period of 2005-2009. The results show that liquidity ratios and macroeconomic condition are the profitability determinant under pooled OLS framework, while only liquidity ratio is significantly affecting profitability under random effects model. However, final result under fixed effects model shows that types of bank and macroeconomic condition are the significant determinants of bank profitability. This study also evidences that Islamic banks are more profitable than conventional banks during the period analyzed. |
| first_indexed | 2025-11-14T15:34:13Z |
| format | Article |
| id | iium-31957 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T15:34:13Z |
| publishDate | 2013 |
| publisher | Universiti Teknologi MARA Terengganu |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-319572013-09-25T06:15:09Z http://irep.iium.edu.my/31957/ Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach Abduh, Muhamad Omar, Mohd. Azmi Mesic, Edina BP173.75 Islam and economics HG1501 Banking This paper examines the impact of bank-specific and macroeconomic factors upon the profitability performance of Islamic and conventional banks in Malaysia using panel data regression analysis. The sample comprises of seventeen conventional banks and thirteen Islamic banks covering the period of 2005-2009. The results show that liquidity ratios and macroeconomic condition are the profitability determinant under pooled OLS framework, while only liquidity ratio is significantly affecting profitability under random effects model. However, final result under fixed effects model shows that types of bank and macroeconomic condition are the significant determinants of bank profitability. This study also evidences that Islamic banks are more profitable than conventional banks during the period analyzed. Universiti Teknologi MARA Terengganu 2013-03-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/31957/1/Terengganu_International_Finance_and_Economics_Journal%2C_3%281%29%2C_pp_1-7%2C_2013.pdf Abduh, Muhamad and Omar, Mohd. Azmi and Mesic, Edina (2013) Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach. Terengganu International Finance and Economics Journal, 3 (1). pp. 1-7. ISSN 2232-0539 http://tifej.uitm.edu.my/images/stories/V3I1/v3i1a1.profitability%20determinants%20of.pdf |
| spellingShingle | BP173.75 Islam and economics HG1501 Banking Abduh, Muhamad Omar, Mohd. Azmi Mesic, Edina Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach |
| title | Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach |
| title_full | Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach |
| title_fullStr | Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach |
| title_full_unstemmed | Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach |
| title_short | Profitability determinants of Islamic and conventional banks in Malaysia: a panel regression approach |
| title_sort | profitability determinants of islamic and conventional banks in malaysia: a panel regression approach |
| topic | BP173.75 Islam and economics HG1501 Banking |
| url | http://irep.iium.edu.my/31957/ http://irep.iium.edu.my/31957/ http://irep.iium.edu.my/31957/1/Terengganu_International_Finance_and_Economics_Journal%2C_3%281%29%2C_pp_1-7%2C_2013.pdf |