Determinants of Islamic Banks Profitability in Malaysia
11 Pages Posted: 8 Jun 2013
Date Written: June 8, 2013
This study seeks to examine how internal and external determinants affect the profitability of Malaysian Islamic Banks. Utilizing a panel data of 6 Malaysian Islamic Banks over the period 2007-2011, the empirical findings suggest that all the internal determinant variables have a statistically significantly impact on bank profitability. Consistent with previous finding, during the period under study, the results suggest that gross domestic product (GDP) help to explain the variations in the Malaysian Islamic Banks while inflation has a negative impact on bank profitability.
Keywords: banks, profitability, multiple linear regression, Malaysia
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