/jurnalpengurusan Wed, 12 Oct 2022 05:21:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/intermediary-role-performance-analysis-of-malaysian-islamic-and-conventional-banks/?utm_source=rss&utm_medium=rss&utm_campaign=intermediary-role-performance-analysis-of-malaysian-islamic-and-conventional-banks Wed, 12 Oct 2022 05:21:16 +0000 /jurnalpengurusan/?post_type=article&p=5848 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 management efficiency is positively related to the bank margin for both Islamic and conventional banks. For Islamic banks, bank size and liquidity ratio have significant negative relationship on bank margin. The default risk is positively related to bank margin for Islamic banks. As for conventional bank, the non interest to total asset ratio has significant positive relationship on bank margin. Therefore, the results show that there are similarities and differences in terms of determinant factors that affect the bank margin between Islamic banks and conventional banks. These empirical results suggest an important policy on issues pertaining to how Islamic and conventional banks have to adjust the changes in the banking environment. The conventional banks have more comparative advantages specifically on management efficiency as its intermediary role performance is also not affected by size.

]]> /jurnalpengurusan/article/islamic-banks-vs-conventional-banks-in-indonesia-an-analysis-on-financial-performances/?utm_source=rss&utm_medium=rss&utm_campaign=islamic-banks-vs-conventional-banks-in-indonesia-an-analysis-on-financial-performances Tue, 11 Oct 2022 07:45:37 +0000 /jurnalpengurusan/?post_type=article&p=5410 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 its performance differs than that of the conventional banks. This paper aims to describe and critically evaluate and compare the financial performance of Islamic banks to that of conventional banks. Data of Capital Adequacy Ratio (CAR), Return on Asset (ROA), Operational Cost/ Operational Revenue (BOPO), Non-Performing Loan (NPL) /Non Performing Financing (NPF) and Loan Deposit Ratio (LDR)/ Financing Deposit Ratio (FDR) for Islamic and conventional banks are examined. The analysis of monthly data covers the period from January 2004 to July 2014 (127 observations). Paired sampled t-test was adopted to see whether there are significant differences in the financial ratios between both banks. This study found that CAR, ROA, BOPO and NPL of conventional banks are significantly higher than that of Islamic banks but not FDR. Based on the result of capital adequacy, the findings suggest that Islamic banks need to have more capital to face the involved risk as that of conventional banks. Conventional banks need to function them selves as financial intermediaries to support the real sector as that of Islamic banks.

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