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.: Home > International Journal of Economics & Management Sciences > 2011 > Volume 1 Number 1 > Mohamad Abdul Hamid1 *, Shaza Marina Azmi

The Performance Of Banking During 2000-2009: Bank Islam Malaysia Berhad And Conventional Banking In Malaysia

Mohamad Abdul Hamid1 *, Shaza Marina Azmi
1* School of Management and West Asian Research Institute (IKRAB) UKM, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia. E-mail: mdah@ukm.my 2 School of Management and West Asian Research Institute (IKRAB) UKM, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia
Abstract :

The objective of this paper is to examine the financial performance of BIMB in the period between 2000 and 2009 and make comparative assessments of Malaysia’s interest free Islamic bank (BIMB) and the interest-based conventional commercial banks. The financial performance of banks is measured based on criteria such as profitability, liquidity, risk and solvency, and community involvement of the bank. The choice of this particular focus is justified by the fact that banks in Malaysia have experienced a significant increase in the number of Islamic banking activities, evident by the high growth rate of Islamic assets. This study evaluates intertemporal and interbank performance of the pioneer of Islamic banking in Malaysia, i.e. Bank Islam Malaysia Berhad (BIMB or ‘the bank’), in profitability, liquidity, risk and solvency as well as community involvement for the period 2000-2009. Financial ratios are applied in measuring these performances. T-tests are used in determining their significance. The study found that while there are no significant difference in profitability during these two periods, BIMB is relatively more liquid and less risky as compared to conventional banks. On top of that, basic modes of Islamic banking, i.e. mudharabah and musyarakah, are not of significant financing portfolio for BIMB. 

Keywords :
The Performance Of Banking

Date Deposited : 07 Jun 2016 20:13

Last Modified : 07 Jun 2016 20:13

Official URL: http://www.omicsonline.com/

Volume 1, Number 1, January 2011 , ISSN 2162-6359

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