The performance of Islamic banking among the commercial banks in Malaysia

2008 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Samsuwatd Zuha Mohd Abbas ◽  
Norli Ali ◽  
Aminah Mohd Abbas
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Significant Difference ◽  
The Mean

This paper examines the accounting performance of the Islamic banking among (??) commercial banks in Malaysia. A total of 18 commercial banks which include 4 Islamic banks are selected as samples covering the period of 2000 - 2006. Accounting performance is measured by the return on assets (ROA) and return on equity (ROE). The objective of the study is (1) to determine whether Islamic banking performance is at par with the conventional banking and (2) to investigate whether the type (Islamic or conventional bank) and age of bank influence the performance. Result of the independence t-test of the study shows that there is no significant difference in the performance of the Islamic and the conventional banking in Malaysia although the mean score for conventional banking is higher. The regression results show that the age of banks has a positive impact on the bank performance where as none of the types of banks influence performance.

scholarly journals Financial Performance of Banks in Lebanon: Conventional vs Islamic

2019 ◽  
Vol 12 (2) ◽  
pp. 40 ◽  
Author(s):  
Boutheina HASHEM ◽  
Hiyam SUJUD
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Banking Industry ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
The Difference ◽  
Conventional Banks

This study compares the performance of Islamic and conventional banking in Lebanon in terms of Return on Assets and Return on Equity over the period 2012-2016. Moreover, it examines whether the internal characteristics of the bank may explain the difference in profitability between two types of banking transactions. In addition, the results of the study are analyzed using a regression analysis applied to a sample of both Islamic and conventional banks to investigate the effects of these variables on bank performance. Furthermore, results show that Islamic banks in Lebanon have better asset adequacy compared to conventional banks. However, conventional banks are better in liquidity and are on an average more profitable than Islamic ones. It is worthy to indicate that the Islamic banking industry in Lebanon is still in its infancy and only very few of the banks were active in this sector.

scholarly journals The relationship between zakat disclosures and Islamic banking performance: Evidence from Yemen

2021 ◽  
Vol 16 (1) ◽  
pp. 52-61
Author(s):  
Eissa A. Al-Homaidi ◽  
Ebrahim Mohammed Al-Matari ◽  
Suhaib Anagreh ◽  
Mosab I. Tabash ◽  
Nabil Ahmed Mareai Senan
Keyword(s):  
Descriptive Analysis ◽  
Secondary Data ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Islamic Financial Institutions ◽  
The Relationship ◽  
Positive Effect

This paper aims to analyze the link between the disclosure of zakat information and the performance of Islamic financial institutions in Yemen. Panel data of three Islamic banks working in Yemen were used. The study used a 16-item disclosure index to measure zakat disclosure information, and the financial performance of banks was calculated using two proxies, such as return on assets (ROA) and return on equity (ROE). Based on secondary data, this study used correlation matrix, descriptive analysis and regression analysis. ROA results revealed that zakat data and the age of a bank significantly affected financial results calculated by ROA, while the size of Islamic banks had an insignificant influence of banking performance. Zakat information and the size of Islamic banks have a positive effect on bank performance, while the age of the bank negatively influences the performance of banks. The results concerning ROE indicated that zakat data and the age of a bank have a strong and significant influence on the performance of banks, determined by ROA, while the size of a bank has a negative and insignificant effect on the performance of banks, determined by ROE.

Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah Di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Collection Method ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This type of research is quantitative. The data collection method used is the documentation method and library study method. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence to ROA. Means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

scholarly journals The Impact of Accounting Conservatism on Corporate Performance Indicators in Egypt

2019 ◽  
Vol 14 (10) ◽  
pp. 1
Author(s):  
Hanaa A. El-Habashy
Keyword(s):  
Performance Indicators ◽  
Corporate Performance ◽  
Positive Impact ◽  
Accounting Conservatism ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Conservative Accounting ◽  
The Impact ◽  
Positive Effect

This study aims to investigate the impact of conservative accounting on corporate performance indicators of Egyptian firms. A sample of balanced data for the 40 most active non-financial companies was collected in the period 2009-2014 to test hypotheses. Panel regression models were used for data analysis. Givoly & Hayn (2000) indicator is used as a benchmark for measuring accounting conservatism. The corporate performance indicators used in this study are return-on-assets (ROA) and return on equity (ROE) representing accounting performance measures, as well as Tobin’s Q which measures market performance. The results of the research show that accounting conservatism has a significant positive impact on corporate performance indicators. This reflects the positive effect of corporate performance on shareholders that leads to a strong corporate financial position. To the best of our knowledge, no study has been conducted in Egypt as an emerging economy.

scholarly journals Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 119
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Data Collection ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This research is quantitative using documentation method and library study in data collection. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence ROA. This means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

scholarly journals Reality of Vietnam’s Commercial Bank Performance and Soundness

2015 ◽  
Vol 22 (02) ◽  
pp. 48-69
Author(s):  
Canh Nguyen Thi ◽  
Hien Nguyen Thi Diem
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Financial Statements ◽  
Equity Capital ◽  
Rating System ◽  
Bank Performance ◽  
Return On Assets ◽  
Banking Efficiency ◽  
Return On Equity ◽  
Bad Debt

This paper employs CAMELS rating system to evaluate the performance and soundness of Vietnam’s commercial banks. Based on the analysis of data from financial statements of the banks in the years 2005/2008–2013, the research results show that the total assets and equity capital of Vietnam’s commercial banks have increased, but their efficiency is not yet high and tends to gradually decrease. The expense-to-revenue ratio was higher than 80% while the return on assets (ROA) ratio remained around 1% and had a tendency to sharply fall to 0.77% and 0.56% in 2012 and 2013 respectively. The return on equity (ROE) ratio, in addition, fell steadily in 2012 (7.42%) and 2013 (5.84%). The findings also indicate that profitability of state-owned commercial banks is higher than that of private joint-stock ones. Additionally, risk degree was high because of a high bad debt (around 4%) and low liquidity (around 90% of loan-to-deposit ratio). In addition to its analysis, the research offers sevaral recommendations that aim at improving banking efficiency and mitigating risk as for Vietnam’s commercial banks.

scholarly journals The comparison of Islamic banks performance in Indonesia before and after the Action to Defend Islam event

2020 ◽  
Vol 2 (1) ◽  
pp. 49-66
Author(s):  
Luksi Visita
Keyword(s):  
Empirical Study ◽  
Commercial Banks ◽  
Profit Sharing ◽  
Third Party ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Paired Sample ◽  
Business Units ◽  
Before And After

Purpose – This study aims to compare the performance of Islamic banking before and after the Islamic defense action. The action to defend Islam is a manifestation of populism, which resulted in mixed responses.Method – Financial performance consisting of return on assets (ROA), financing to deposit ratio (FDR), third party funds (DPK), non performing financing (NPF) and profit sharing financing on total financing were analyzed from 30 Islamic commercial banks and Sharia business units in Indonesia. The data were analyzed using different test paired sample T-test.Result – The results show that only TPF and FDR have significant differences. The DPK value increases, while the FDR decreases.Implication – This study can support industry to consider aspects needed to be taken care of during political events.Originality – This study enriches the empirical study of political and business interaction.

scholarly journals Conducting Business with God: Is God Blessing Islamic Banks with Better Financial Performance than Conventional Banks?

2019 ◽  
Vol 6 (2) ◽  
pp. 40
Author(s):  
Musaed S. Alali
Keyword(s):  
Financial Performance ◽  
Financial Analysis ◽  
Stock Exchange ◽  
The Other ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Significant Difference ◽  
Kuwait Stock Exchange ◽  
Conventional Banks

This study aims to compare the financial performance between Islamic and conventional banks listed at Kuwait stock exchange over the period 2011-2018 using the modified DuPont model of financial analysis which is based on the analysis of return on equity (ROE). Unlike previous studies where researchers compared the performance on a bank-to-bank basis, this study examines the aggregate ratios of Islamic banks and compare it to aggregate ratios of conventional banks. The study also adds volatility into the model since consistency in returns indicated a more stable sector.  Results obtained from this study showed that conventional banks in Kuwait had a better mean performance during the study period in terms of both return on assets (ROA) and return in equity (ROE), Islamic banks also showed a higher deviation in these two ratios resulting in a lower Sharpe ratio. While the results showed no statistically significant mean difference between Islamic and conventional banks in terms of return on assets (ROA), the results also showed a statistically significant difference in mean return on equity (ROE) between the two sub-sectors.  On the other hand, Islamic banks showed an impressive improvement in their ratios during the last three years of the study period which impose a real threat to conventional banks in the future.

scholarly journals The need for Islamic banking services in commercial banks of Uzbekistan and its positive impact on economic growth

2020 ◽  
Vol 1 ◽  
pp. 43-46
Author(s):  
Tursunov Anvar Sultanovich
Keyword(s):  
World Bank ◽  
Commercial Banks ◽  
Positive Impact ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
The World Bank ◽  
Factors Influencing ◽  
The World

This article presents the development of Islamic banking services, development trends in the World Bank financial system and the factors influencing the growth of the country’s economy. Today, two-thirds of Islamic finance is concentrated in Islamic banks. The urgency of establishing Islamic banking services in commercial banks is highlighted. There are practical suggestions and recommendations for the development of this area.

scholarly journals Effects of E-Banking Adoption on the Financial Performance of State-Owned Commercial Banks in Bangladesh

2021 ◽  
Vol 34 (4) ◽  
pp. 1-20
Author(s):  
Md. Imran Hossain
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Impact ◽  
Positive Impact ◽  
Least Square ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Adoption And Implementation ◽  
Significant Negative Impact

This study examines the relationship between e-banking adoption and the financial performance of state-owned commercial banks in Bangladesh. The pooled ordinary least square (OLS) estimate was applied to analyze the panel data of the sample banks. The empirical findings reveal that e-banking adoption and implementation has a significant negative impact on banks' profitability in terms of return on assets, return on equity, and net interest margin in the year of adoption. However, the result also shows that e-banking has a significant positive impact on return on assets in the year following adoption.

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