The objective of this paper is to investigate the effect of bank specific characteristics and macroeconomics variables on bank margin (NIM) which reflects the intermediary role of Islamic and conventional banks in Malaysia for the period of 2006 to 2014. By using static panel analysis, the results show that managementContinue Reading
According to the Shari’ah Governance Framework (Bank Negara Malaysia 2011), each Islamic bank and Islamic financial institution in Malaysia is required to establish the Shari’ah audit function. The Shari’ah audit function, according to the Framework, is instituted in order to provide reasonable assurance and to ensure an effective internal controlContinue Reading
Islamic banks in Indonesia havebeen in existence for more than two decades. Substantial development has taken place in this largest Muslim country. Regulator, academicians, and practitioners have been providing significant support with the objective of improving the performance of the Islamic banking. Hence, it is timely to assess whether itsContinue Reading
The present paper provides new empirical evidence regarding revenue efficiency in the Malaysian Islamic banking sector during the period from 2006 to 2010. The sample is comprised of 17 domestic and foreign Islamic banks. The Data Envelopment Analysis (DEA) method is employed to compute the revenue efficiency levels. The resultsContinue Reading
Islamic banks are banks that are set up to operate within the Islamic business framework that is more equitable and based on socio-economic welfare of the society and the people. In Islamic law on commercial transactions and other related contractual activities (the framework), transparency and adequate disclosure are the fundamentalContinue Reading
Using CAMELS rating to measure bank performance, the present study compares the performance estimates for Islamic banks with conventional banks operating in Malaysia from 2008 to 2011. The present study further identifies the determinants affecting the performance of conventional and Islamic banks in Malaysia. Using a sample of 19 conventionalContinue Reading
This study examines the relationship between the conventional and mudharabah deposit rates of Malaysian banks in two separate periods – between January 1996 and September 2004, and between October 2004 and June 2011 – which signify the implementation of a framework for calculating the Islamic bank deposit rate and theContinue Reading
This paper aims to examine the moderating effect of Shariah Supervisory Boards (SSBs) on the relationship between board size, Chief Risk Officer (CRO), and risk-taking of 24 Islamic banks (IBs) in Malaysia, Indonesia and Brunei from 2010 to 2015. This approach integrates the arguments of agency theory and resource dependenceContinue Reading