Abstract
This research was conducted to investigate the determinants of the financial performance of Islamic banking in Malaysia. The performance of Islamic Bank measured based on return on asset (ROA), while the independent variables examined were capital adequacy (CA), asset quality (AQ), and liquidity management (LM). The data for this research were collected from twelve out of sixteen Islamic Banks in Malaysia listed by Bank Negara Malaysia. The annual reports were analyzed for six years which were from the year 2010 until 2016. The findings revealed that there is a significant relationship between asset quality and liquidity management towards the performance of Islamic Banking in Malaysia. However, there is insignificant relationship between capital adequacies towards the performance of Islamic Banking in Malaysia. Nevertheless, there are still other factors that may affect the performance of Islamic Banking in Malaysia.
Highlights
Every country has financial institutions to embody the financials guidelines and ensure the economic growth as well as, control of money for the country
Conventional banking and investment banking are considered under the commercial banking guidelines Islamic banking falls under its own category
The main objective of this study is to investigate the determinants of financial performance of Islamic Banking in Malaysia
Summary
Every country has financial institutions to embody the financials guidelines and ensure the economic growth as well as, control of money for the country. The presence of banking institution is to help the growth of economic activity in a country. In Malaysia, there are currently three types of banking institution which are conventional banking, investment banking and Islamic banking. Conventional banking and investment banking are considered under the commercial banking guidelines Islamic banking falls under its own category. The banking system is a financial institution or agency for the public to save funds in the forms of savings or in the form of credit to improve living standards while keeping their money in the banks. The banking system functions as a supplier of the money and funding money to help the economic activities in Malaysia. An investment bank deals with money and credit for profit-seeking business firm
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
