Determinants of Islamic Banking Profitability in Malaysia

Determinants of Islamic Banking Profitability in Malaysia

Islamic banks were experiencing tremendous growth by showing high profitability level and less affected by the financial turmoil. Thus, the objective of this paper is to investigate the impact of bank-specific as well as industry-specific and macroeconomic indicators upon Islamic banks profitabil...

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Bibliographic Details
Main Authors: Abduh, Muhamad, Idrees, Yameen
Format: Article
Language:English
Published: INSI Publications 2013
Subjects:
BP173.75 Islam and economics
HG1501 Banking
Online Access:http://irep.iium.edu.my/30037/
http://irep.iium.edu.my/30037/
http://irep.iium.edu.my/30037/1/Abduh_and_Yameen%2C_AJBAS_Feb_2013.pdf
id iium-30037
recordtype eprints
spelling iium-300372013-07-08T23:17:40Z http://irep.iium.edu.my/30037/ Determinants of Islamic Banking Profitability in Malaysia Abduh, Muhamad Idrees, Yameen BP173.75 Islam and economics HG1501 Banking Islamic banks were experiencing tremendous growth by showing high profitability level and less affected by the financial turmoil. Thus, the objective of this paper is to investigate the impact of bank-specific as well as industry-specific and macroeconomic indicators upon Islamic banks profitability, particularly in Malaysia, for the period of 2006 to 2010. Using pooled regression analysis, and by taking 10 Islamic banks/windows, the result shows that the bank size is a vital importance in affecting its profitability. In addition, financial market development and market concentration has a significant positive impact in determining profitability. Finally, from the macro-economic variables, inflation has a significant positive impact on Islamic banks’profitability which shows the different nature between Islamic and conventional banks. INSI Publications 2013-02-15 Article PeerReviewed application/pdf en http://irep.iium.edu.my/30037/1/Abduh_and_Yameen%2C_AJBAS_Feb_2013.pdf Abduh, Muhamad and Idrees, Yameen (2013) Determinants of Islamic Banking Profitability in Malaysia. Australian Journal of Basic and Applied Sciences, 7 (2). pp. 204-210. ISSN 1991-8178 http://www.ajbasweb.com/ajbas/2013/February/204-210.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic BP173.75 Islam and economics
HG1501 Banking
spellingShingle BP173.75 Islam and economics
HG1501 Banking
Abduh, Muhamad
Idrees, Yameen
Determinants of Islamic Banking Profitability in Malaysia
description Islamic banks were experiencing tremendous growth by showing high profitability level and less affected by the financial turmoil. Thus, the objective of this paper is to investigate the impact of bank-specific as well as industry-specific and macroeconomic indicators upon Islamic banks profitability, particularly in Malaysia, for the period of 2006 to 2010. Using pooled regression analysis, and by taking 10 Islamic banks/windows, the result shows that the bank size is a vital importance in affecting its profitability. In addition, financial market development and market concentration has a significant positive impact in determining profitability. Finally, from the macro-economic variables, inflation has a significant positive impact on Islamic banks’profitability which shows the different nature between Islamic and conventional banks.
format Article
author Abduh, Muhamad
Idrees, Yameen
author_facet Abduh, Muhamad
Idrees, Yameen
author_sort Abduh, Muhamad
title Determinants of Islamic Banking Profitability in Malaysia
title_short Determinants of Islamic Banking Profitability in Malaysia
title_full Determinants of Islamic Banking Profitability in Malaysia
title_fullStr Determinants of Islamic Banking Profitability in Malaysia
title_full_unstemmed Determinants of Islamic Banking Profitability in Malaysia
title_sort determinants of islamic banking profitability in malaysia
publisher INSI Publications
publishDate 2013
url http://irep.iium.edu.my/30037/
http://irep.iium.edu.my/30037/
http://irep.iium.edu.my/30037/1/Abduh_and_Yameen%2C_AJBAS_Feb_2013.pdf
first_indexed 2023-09-18T20:44:06Z
last_indexed 2023-09-18T20:44:06Z
_version_ 1777409559602659328

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