CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd
This study examines the financial performance of Bank Islam Malaysia Berhad (BIMB) over the period 2007 to 2011 and makes comparative assessment in terms of an interest free Islamic bank (BIMB) and Malayan Banking Berhad (Maybank), an interest-based conventional commercial bank. The financial perfor...
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| Format: | Article |
| Language: | English |
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Faculty of Business Management
2013
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| Online Access: | https://ir.uitm.edu.my/id/eprint/8739/1/AJ_BADRUL%20HISHAM%20KAMARUDDIN%20BMQR%2013.pdf |
| _version_ | 1796899574449700864 |
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| author | Mohd, Rohani |
| author_facet | Mohd, Rohani |
| author_sort | Mohd, Rohani |
| collection | UITM |
| description | This study examines the financial performance of Bank Islam Malaysia Berhad (BIMB) over the period 2007 to 2011 and makes comparative assessment in terms of an interest free Islamic bank (BIMB) and Malayan Banking Berhad (Maybank), an interest-based conventional commercial bank. The financial performance of these banks is measured by using the CAMEL model. The findings revealed that in terms of capital adequacy and liquidity, BIMB's performance is above Maybank. In this regard, this study presents some policy implications that are relevant to the conduct of Islamic banks in managing liquidity. Meanwhile, asset quality, management capability and earnings are on par with Maybank. In terms of business volume, namely total deposits; total loans and financing; total assets; and total shareholders‟ equity, BIMB is far below that of Maybank. All of the above verify that age in terms of duration of banking business and extent of financial landscape are in favor of the conventional banking system. Given time, the Islamic banking business will gradually be on level playing ground with their conventional counterpart as desired by the Malaysian government for the two systems to run and develop in parallel to each other. |
| first_indexed | 2024-03-06T01:23:05Z |
| format | Article |
| id | oai:ir.uitm.edu.my:8739 |
| institution | Universiti Teknologi MARA |
| language | English |
| last_indexed | 2024-03-06T01:23:05Z |
| publishDate | 2013 |
| publisher | Faculty of Business Management |
| record_format | dspace |
| spelling | oai:ir.uitm.edu.my:87392019-03-18T06:46:05Z https://ir.uitm.edu.my/id/eprint/8739/ CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd bmqr Mohd, Rohani This study examines the financial performance of Bank Islam Malaysia Berhad (BIMB) over the period 2007 to 2011 and makes comparative assessment in terms of an interest free Islamic bank (BIMB) and Malayan Banking Berhad (Maybank), an interest-based conventional commercial bank. The financial performance of these banks is measured by using the CAMEL model. The findings revealed that in terms of capital adequacy and liquidity, BIMB's performance is above Maybank. In this regard, this study presents some policy implications that are relevant to the conduct of Islamic banks in managing liquidity. Meanwhile, asset quality, management capability and earnings are on par with Maybank. In terms of business volume, namely total deposits; total loans and financing; total assets; and total shareholders‟ equity, BIMB is far below that of Maybank. All of the above verify that age in terms of duration of banking business and extent of financial landscape are in favor of the conventional banking system. Given time, the Islamic banking business will gradually be on level playing ground with their conventional counterpart as desired by the Malaysian government for the two systems to run and develop in parallel to each other. Faculty of Business Management 2013 Article NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/8739/1/AJ_BADRUL%20HISHAM%20KAMARUDDIN%20BMQR%2013.pdf CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd. (2013) Business and Management Quarterly Review (BMQR) <https://ir.uitm.edu.my/view/publication/Business_and_Management_Quarterly_Review_=28BMQR=29/>, 4 (3&4). pp. 81-89. ISSN 2180-2777 http://www.bmqruitm.com/ |
| spellingShingle | Mohd, Rohani CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd |
| title | CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd |
| title_full | CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd |
| title_fullStr | CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd |
| title_full_unstemmed | CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd |
| title_short | CAMEL analysis of Islamic banking and conventional banking in Malaysia / Badrul Hisham Kamaruddin and Rohani Mohd |
| title_sort | camel analysis of islamic banking and conventional banking in malaysia badrul hisham kamaruddin and rohani mohd |
| url | https://ir.uitm.edu.my/id/eprint/8739/1/AJ_BADRUL%20HISHAM%20KAMARUDDIN%20BMQR%2013.pdf |
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