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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| Format: | Student Project |
| Language: | English |
| Published: |
2010
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| Online Access: | https://ir.uitm.edu.my/id/eprint/30602/ |
| _version_ | 1848807540170686464 |
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| author | Rusli, Raimi |
| author_facet | Rusli, Raimi |
| author_sort | Rusli, Raimi |
| building | UiTM Institutional Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-14T22:44:26Z |
| format | Student Project |
| id | uitm-30602 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T22:44:26Z |
| publishDate | 2010 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-306022020-07-02T03:20:00Z https://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 https://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. (2010) [Student Project] <http://terminalib.uitm.edu.my/30602.pdf> (Unpublished) |
| 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 |
| title | 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_short | 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 |
| topic | Special classes of banks and financial institutions Profits. Corporate profits Finance, Islamic |
| url | https://ir.uitm.edu.my/id/eprint/30602/ |