Determinants of Profitability – A Comparative Analysis of Islamic Banks and Conventional Banks in ASEAN Countries

8 Pages Posted: 16 Apr 2013

See all articles by Ulaganathan Subramanian

Ulaganathan Subramanian

Universiti Teknologi Brunei

Ahmed Wahidudin

Universiti Teknologi Brunei

Pg. Abd. Kamaluddin

Universiti Teknologi Brunei

Date Written: April 16, 2013

Abstract

The profit and loss sharing system allows bank to share risk with client in Islamic banks. Moreover Islamic banks are required to operate as per Islamic Rules and principles. Unlike Islamic banks, conventional banks operate based on interest. The income of conventional banks is the difference between interest paid to depositors and interest paid by borrowers. This is the common banking system around the world. This study will analyze determinants of profitability in Islamic banks will be compared to conventional banks in ASEAN countries. This study will aim to present an empirical investigation on ASEAN Islamic and conventional banks. The study of profitability will look at different banking characteristics such as Short term fund management, Source management, capitalization, liquidity, size and Macro- economic conditions.

Keywords: Islamic Banks, ASEAN Countries, Profitability

JEL Classification: G21

Suggested Citation

Subramanian, Ulaganathan and Wahidudin, Ahmed and Kamaluddin, Pg. Abd., Determinants of Profitability – A Comparative Analysis of Islamic Banks and Conventional Banks in ASEAN Countries (April 16, 2013). Available at SSRN: https://ssrn.com/abstract=2251602 or http://dx.doi.org/10.2139/ssrn.2251602

Ulaganathan Subramanian (Contact Author)

Universiti Teknologi Brunei ( email )

UTB School of Business
Jalan Tungku Link,
Gadong BE 1410,, BE1410
Brunei

Ahmed Wahidudin

Universiti Teknologi Brunei ( email )

Tungku Link
Gadong
Berakas A, Brunei Muara BE1410
Brunei

Pg. Abd. Kamaluddin

Universiti Teknologi Brunei ( email )

Tungku Link
Gadong
Berakas A, Brunei Muara BE1410
Brunei

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