The Performance of Malaysian Islamic Bank During 1984–1997: An Exploratory Study

International Journal of Islamic Financial Services Vol. 1 No. 3

14 Pages Posted: 1 Nov 2018

See all articles by Abdus Samad

Abdus Samad

Independent

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Date Written: 2006

Abstract

The study evaluates intertemporal and interbank performance of Islamic bank (Bank Islam Malaysia Berhad (BIMB) in profitability, liquidity, risk and solvency; and community involvement for the period 1984-1997. Financial ratios are applied in measuring these performances. T-test and F-test are used in determining their significance. The study found that BIMB is relatively more liquid and less risky compared to a group of 8 conventional banks. Our analysis of the primary data identified reasons why the supply of loans under profit sharing and joint venture profit sharing is not popular in Malaysia. 40% to 70% bankers surveyed indicated that lack of knowledgeable bankers in selecting, evaluating and managing profitable project is a significant cause.

Keywords: Intertemporal Performance, Interbank Performance, Islamic Bank, Financial Ratios

Suggested Citation

Samad, Abdus and Hassan, M. Kabir, The Performance of Malaysian Islamic Bank During 1984–1997: An Exploratory Study (2006). International Journal of Islamic Financial Services Vol. 1 No. 3, Available at SSRN: https://ssrn.com/abstract=3263331 or http://dx.doi.org/10.2139/ssrn.3263331

Abdus Samad

Independent

M. Kabir Hassan (Contact Author)

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

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