Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia

The present study provides new empirical evidence of bank stability measures for 50 banks in Malaysia, for a period from 1999 to 2015. There are two methods of measuring bank stability that is using z-score and CAMELS variables. After calculating, these variables are ranked, with the highest average...

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Main Authors: Abdul Karim, Norzitah, Syed Jaafar Alhabshi, Syed Musa, Kassim, Salina, Haron, Razali
Format: Proceeding Paper
Language:English
English
Published: 2016
Subjects:
Online Access:http://irep.iium.edu.my/54536/
http://irep.iium.edu.my/54536/1/Norzitah%20Abdul%20Karim%20ABRIC2016.pdf
http://irep.iium.edu.my/54536/2/ABRIC%202016.pdf
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author Abdul Karim, Norzitah
Syed Jaafar Alhabshi, Syed Musa
Kassim, Salina
Haron, Razali
author_facet Abdul Karim, Norzitah
Syed Jaafar Alhabshi, Syed Musa
Kassim, Salina
Haron, Razali
author_sort Abdul Karim, Norzitah
building IIUM Repository
collection Online Access
description The present study provides new empirical evidence of bank stability measures for 50 banks in Malaysia, for a period from 1999 to 2015. There are two methods of measuring bank stability that is using z-score and CAMELS variables. After calculating, these variables are ranked, with the highest average is ranked as one, and the lowest average is ranked last, or fifty. This is following the method by (Roman & Şargu, 2013) and (Dincer, Gencer, Orhan, & Sahinbas, 2011) and extending it by introducing the average of total ranking for all variables. The empirical findings suggest that both local Islamic and conventional banks are ranked favourable in overall average bank stability score, sensitivity to market risk, asset quality, earning and profitability but local conventional banks are recorded favourable ranking in liquidity. Comparing the two types of local banks, conventional banks are rank better in liquidity, sensitivity to market risk and earning and profitability.
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format Proceeding Paper
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institution International Islamic University Malaysia
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language English
English
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publishDate 2016
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spelling iium-545362017-02-14T03:54:27Z http://irep.iium.edu.my/54536/ Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia Abdul Karim, Norzitah Syed Jaafar Alhabshi, Syed Musa Kassim, Salina Haron, Razali HG1501 Banking The present study provides new empirical evidence of bank stability measures for 50 banks in Malaysia, for a period from 1999 to 2015. There are two methods of measuring bank stability that is using z-score and CAMELS variables. After calculating, these variables are ranked, with the highest average is ranked as one, and the lowest average is ranked last, or fifty. This is following the method by (Roman & Şargu, 2013) and (Dincer, Gencer, Orhan, & Sahinbas, 2011) and extending it by introducing the average of total ranking for all variables. The empirical findings suggest that both local Islamic and conventional banks are ranked favourable in overall average bank stability score, sensitivity to market risk, asset quality, earning and profitability but local conventional banks are recorded favourable ranking in liquidity. Comparing the two types of local banks, conventional banks are rank better in liquidity, sensitivity to market risk and earning and profitability. 2016-11-16 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/54536/1/Norzitah%20Abdul%20Karim%20ABRIC2016.pdf application/pdf en http://irep.iium.edu.my/54536/2/ABRIC%202016.pdf Abdul Karim, Norzitah and Syed Jaafar Alhabshi, Syed Musa and Kassim, Salina and Haron, Razali (2016) Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia. In: 2nd Advances in Business Research International Conference ABRIC 2016), 16th-17th Nov. 2016, Kedah. (Unpublished) http://abric.uitm.edu.my/index.php/parallel-session
spellingShingle HG1501 Banking
Abdul Karim, Norzitah
Syed Jaafar Alhabshi, Syed Musa
Kassim, Salina
Haron, Razali
Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia
title Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia
title_full Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia
title_fullStr Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia
title_full_unstemmed Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia
title_short Measuring bank stability: a comparative analysis between Islamic and conventional banks in Malaysia
title_sort measuring bank stability: a comparative analysis between islamic and conventional banks in malaysia
topic HG1501 Banking
url http://irep.iium.edu.my/54536/
http://irep.iium.edu.my/54536/
http://irep.iium.edu.my/54536/1/Norzitah%20Abdul%20Karim%20ABRIC2016.pdf
http://irep.iium.edu.my/54536/2/ABRIC%202016.pdf