Gauging the financial performance of full-fledged local Islamic banks and foreign Islamic banks in Malaysia after the implementation of globalization policy / Nirwana Ajirul

The purpose of this study is to analyse the performance of local Islamic bank and foreign Islamic bank (Mega International Bank) in Malaysia to find out whether the implementation of globalization policy gives impact to the local Islamic banks. For this study, a sample of 9 banks was selected, five of them are local Islamic banks and the other four are foreign Islamic banks. For in depth understanding, key performance indicators were used to analyse the performance of banks. The analysis includes the measures of differences in performance of the local Islamic banks and foreign Islamic banks in terms of profitability, leverage and liquidity. Five financial ratios were used to gauge profitability, leverage and liquidity. Findings show that the local Islamic banks are leading in terms of profitability, while in leverage and liquidity both local Islamic banks and foreign Islamic banks are at par.