The impact of Malaysian Ringgit fluctuation towards profitability of Islamic Banks in Malaysia / Suhaily Maizan Abdul Manaf

Profitability of a bank mostly relies on its financial performance as the ability to leverage operational, investment decisions and strategies to achieve a business financial
constancy. This study is devoted to examine the selected Malaysian Ringgit factors that bring impact to the profitability of local Islamic banks in Malaysia. A set of data were
obtained from each bank’s financial statement and the World Bank data from year 2007 until 2016. Return on assets has been used as a dependent variable while debt to equity
ratio, capital adequacy ratio, exchange rate and interest rate serve as an independent variable. The findings show that three independent variables give positive significant
relationship and will be discussed further throughout the paper. For that purpose, policymakers should focus on these three variables for standardizing the economic environment to all local Islamic banks operating in this country.