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A Study of Islamic and Conventional Banks in Malaysia دراسة البنوك الإسلامية والتقليدية في ماليزيا

Author

Listed:
  • Cheng Fan Fah

    (Professor at the Economics Faculty of the University Putra Malaysia (UPM).)

  • Abbas Hassani

    (University Putra Malaysia.)

Abstract

Many scholars have researched comparison of conventional and Islamic banking systems, with regards to their performance from time to time. This study compares their respective profitability in terms of volume and volatility of their deposits and loans in Malaysia in a six years period (2006-2011) that other writers have not discussed in detail. The results in this study indicate that there are positive and significant relationships between volume of loans and volume of customers’ deposits and profitability of banks. However, volatility of loans and deposits does not have a significant impact on banks’ profit-efficiency in Malaysia. The results of this research also reveal that Malaysian conventional banks were more profitable than Islamic banks during the period of study. The ROA and ROE are significantly different and mean of ROA and ROE in conventional banks are higher than those in Islamic banks. The main contribution of banks’ profits comes from the spread between the interest earned on loans and the return payable on customer deposits. Both of these are internal factors. Volume of loans and volume of deposits are found to have significant influence on banks’ profitability. Therefore, managers and banks’ administrators should either focus their attention on these two determinants or adopt some kind of policies that will lead banks to increase their volume of loans and deposits to boost banks profitability level. دأب كثير من العلماء على إجراء البحوث من حين لأخر للمقارنة بين انظمة البنوك الإسلامية والتقليدية فيما يتعلق بأدائها. هذه الدراسة تقارن بين ربحية كل منهما حسب حجم وتقلب إيداعاتها وقروضها في ماليزيا خلال فترة ست سنوات (2006-2011م) وهي جوانب لم يتطرق إليها الكتاب الآخرون بشكل مفصل. وتشير نتائج هذه الدراسة إلى وجود علاقات إيجابية ومعنوية بين حجم القروض وحجم ايداعات العملاء وربحية البنوك. ومع ذلك فإن التقلبات في القروض والايداعات ليس لها تأثير معنوي على الكفاءة الربحية للبنوك الماليزية. كما تشير نتائج هذا البحث إلى أن البنوك التقليدية بماليزيا كانت أكثر ربحية من البنوك الإسلامية خلال فترة الدراسة. كما أن العائد على الأصول والعائد على حقوق المساهمين مختلفان معنويًا، كما أن متوسط العائد على الأصول ومتوسط العائد على حقوق المساهمين في البنوك التقليدية أعلى من مثيلتها في البنوك الإسلامية. وتأتي المساهمة الرئيسية لأرباح البنوك من الفرق بين الفائدة المكتسبة على القروض والعائد المدفوع على إيداعات العملاء. وكلا العاملين يعتبران من العوامل الداخلية. ولقد تبين أن حجم القروض وحجم الايداعات لهما تاثير معنوي على ربحية البنوك. لذا يجب على المدراء والإداريين العاملين في البنوك أما تركيز اهتمامهم على المحددين المذكورين أو تبني بعض أنواع من السياسات التي ستساعد البنوك على زيادة حجم قروضها وإيداعاتها لرفع مستوى ربحيتها.

Suggested Citation

  • Cheng Fan Fah & Abbas Hassani, 2014. "A Study of Islamic and Conventional Banks in Malaysia دراسة البنوك الإسلامية والتقليدية في ماليزيا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 27(1), pages 73-99, January.
    • Handle: RePEc:abd:kauiea:v:27:y:2014:i:1:no:3:p:73-99
    DOI: 10.4197/Islec.27-1.3
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    References listed on IDEAS

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