{"id":4529,"date":"2021-06-14T01:33:15","date_gmt":"2021-06-13T17:33:15","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=4529"},"modified":"2021-09-09T12:29:55","modified_gmt":"2021-09-09T04:29:55","slug":"financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\/","title":{"rendered":"Financial Performance Evaluation of Islamic Banking System: A Comparative Study among Malaysia\u2019s Banks"},"content":{"rendered":"<p><span class=\"fontstyle0\">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 <\/span><span class=\"fontstyle0\">CAMEL <\/span><span class=\"fontstyle0\">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 (<\/span><span class=\"fontstyle0\">DOLS<\/span><span class=\"fontstyle0\">) and Fully Modified Ordinary Least Square (<\/span><span class=\"fontstyle0\">FMOLS<\/span><span class=\"fontstyle0\">) 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\u2019s 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.<\/span><\/p>\n","protected":false},"template":"","tags":[744,745,746,747,640],"jel-code":[],"article-type":[1329],"class_list":["entry","author-jem","post-4529","article","type-article","status-publish","tag-banking-performance","tag-camel","tag-dynamic-ordinary-least-square-dols","tag-fully-modified-ordinary-least-square-fmols","tag-islamic-banking","article-type-normal-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Financial Performance Evaluation of Islamic Banking System: A Comparative Study among Malaysia\u2019s Banks | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Financial Performance Evaluation of Islamic Banking System: A Comparative Study among Malaysia\u2019s Banks | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"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 bankingContinue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2021-09-09T04:29:55+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\\\/\",\"name\":\"Financial Performance Evaluation of Islamic Banking System: A Comparative Study among Malaysia\u2019s Banks | Jurnal Ekonomi Malaysia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\"},\"datePublished\":\"2021-06-13T17:33:15+00:00\",\"dateModified\":\"2021-09-09T04:29:55+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Financial Performance Evaluation of Islamic Banking System: A Comparative Study among Malaysia\u2019s Banks\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"name\":\"Jurnal Ekonomi Malaysia\",\"description\":\"Universiti Kebangsaan Malaysia\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\",\"name\":\"Jurnal Ekonomi Malaysia\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"contentUrl\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"width\":512,\"height\":308,\"caption\":\"Jurnal Ekonomi Malaysia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\",\"https:\\\/\\\/x.com\\\/EkonomiJurnal\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Financial Performance Evaluation of Islamic Banking System: A Comparative Study among Malaysia\u2019s Banks | Jurnal Ekonomi Malaysia","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ukm.my\/jem\/article\/financial-performance-evaluation-of-islamic-banking-system-a-comparative-study-among-malaysias-banks\/","og_locale":"en_US","og_type":"article","og_title":"Financial Performance Evaluation of Islamic Banking System: A Comparative Study among Malaysia\u2019s Banks | Jurnal Ekonomi Malaysia","og_description":"The promotion of Islamic banking is parallel with the aim of Malaysia to be the pioneer of Islamic financial hub in the region. 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