Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks
The promotion of Islamic banking is parallel with the aim of Malaysia to be the pioneer of Islamic financial hub in the region. With the recent commitment, it is timely to further examine the performance of the industry constituents. Therefore, this study aims to investigate the performance of Isl...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2018
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| Online Access: | http://journalarticle.ukm.my/19799/ http://journalarticle.ukm.my/19799/1/jeko_522-11.pdf |
| _version_ | 1848814934491660288 |
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| author | Samsudin Hazman, Nawawi Mohd Nasir, Abd Halim Zairihan, Md Said Ahmad Syahmi, |
| author_facet | Samsudin Hazman, Nawawi Mohd Nasir, Abd Halim Zairihan, Md Said Ahmad Syahmi, |
| author_sort | Samsudin Hazman, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | The promotion of Islamic banking is parallel with the aim of Malaysia to be the pioneer of Islamic financial hub in
the region. With the recent commitment, it is timely to further examine the performance of the industry constituents.
Therefore, this study aims to investigate the performance of Islamic banking system in comparison to its conventional
counterpart in Malaysia using CAMEL model. For that purpose, annual financial data collected from ten conventional
and Islamic banks in Malaysia since 2004 until 2016 is used in the analysis. Both Dynamic Ordinary Least Square
(DOLS) and Fully Modified Ordinary Least Square (FMOLS) estimations technique as suggested by Pedroni (2001) are
employed. We find that conventional banking system performed better than its counterpart. The maturity of conventional
banks which has treads Malaysia’s financial market earlier could plausibly dominate the results. Our evidence suggests
that the regulators should strengthen Islamic banking system through more reforms and mergers to improve its capital,
assets, management, earnings and liquidity. |
| first_indexed | 2025-11-15T00:41:58Z |
| format | Article |
| id | oai:generic.eprints.org:19799 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:41:58Z |
| publishDate | 2018 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:197992022-09-21T06:50:53Z http://journalarticle.ukm.my/19799/ Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks Samsudin Hazman, Nawawi Mohd Nasir, Abd Halim Zairihan, Md Said Ahmad Syahmi, The promotion of Islamic banking is parallel with the aim of Malaysia to be the pioneer of Islamic financial hub in the region. With the recent commitment, it is timely to further examine the performance of the industry constituents. Therefore, this study aims to investigate the performance of Islamic banking system in comparison to its conventional counterpart in Malaysia using CAMEL model. For that purpose, annual financial data collected from ten conventional and Islamic banks in Malaysia since 2004 until 2016 is used in the analysis. Both Dynamic Ordinary Least Square (DOLS) and Fully Modified Ordinary Least Square (FMOLS) estimations technique as suggested by Pedroni (2001) are employed. We find that conventional banking system performed better than its counterpart. The maturity of conventional banks which has treads Malaysia’s financial market earlier could plausibly dominate the results. Our evidence suggests that the regulators should strengthen Islamic banking system through more reforms and mergers to improve its capital, assets, management, earnings and liquidity. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19799/1/jeko_522-11.pdf Samsudin Hazman, and Nawawi Mohd Nasir, and Abd Halim Zairihan, and Md Said Ahmad Syahmi, (2018) Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks. Jurnal Ekonomi Malaysia, 52 (2). pp. 137-147. ISSN 0127-1962 https://www.ukm.my/jem/issue/v52i2/ |
| spellingShingle | Samsudin Hazman, Nawawi Mohd Nasir, Abd Halim Zairihan, Md Said Ahmad Syahmi, Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks |
| title | Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks |
| title_full | Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks |
| title_fullStr | Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks |
| title_full_unstemmed | Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks |
| title_short | Financial performance evaluation of Islamic banking system : a comparative study among Malaysia’s banks |
| title_sort | financial performance evaluation of islamic banking system : a comparative study among malaysia’s banks |
| url | http://journalarticle.ukm.my/19799/ http://journalarticle.ukm.my/19799/ http://journalarticle.ukm.my/19799/1/jeko_522-11.pdf |