Abstract
In Malaysia, the Banking system have growing dramatically with much of the entrance of foreign banks opened its branch in Malaysia. The competition of these banks indicates the profitability is unstable thus affect Malaysian economic. As Malaysian economy is unpredictable, there is a need to have knowledge about the economy because the macroeconomic variables keep on changing frequently which gives effect to the banks profitability and Malaysian general economy. In that respect, this paper examine the determinants of Islamic and Commercial Banks' Return on Asset (ROA) in Malaysia using the macroeconomic variables such as GDP per capita Consumer Price Index Money Supply, M2 and Unemployment during the period of 2006 until 2012 based on annual dataset. This study use for panel data of Micro Panel (Short T) with the estimation of pooled Ordinary Least Square (OLS). The empirical findings suggest that for Malaysian Islamic Banks, the GDP per capita Consumer Price Index, Money Supply, M2 and Unemployment have positive significant relationship with the dependent variable, Islamic Banks' Return on Asset (ROA). For Commercial Banks, the GDP per capita Consumer Price Index while Money Supply, M2 and Unemployment have not significantly explained the variations of Return on Asset (ROA) in Malaysia.
Metadata
Item Type: | Student Project |
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Creators: | Creators Email / ID Num. Mashudin, Ida Faridah 2011499824 |
Contributors: | Contribution Name Email / ID Num. Thesis advisor Jambari, Razak UNSPECIFIED Thesis advisor Abd Ghafar, Farha UNSPECIFIED |
Subjects: | H Social Sciences > HB Economic Theory. Demography > Macroeconomics H Social Sciences > HG Finance > Banking > Special classes of banks and financial institutions H Social Sciences > HJ Public Finance > Finance, Islamic |
Divisions: | Universiti Teknologi MARA, Johor > Segamat Campus > Faculty of Business and Management |
Programme: | Bachelor of Business Administrations (Hons) Islamic Banking |
Keywords: | Macroeconomic, Islamic bank, commercial bank |
Date: | 2013 |
URI: | https://ir.uitm.edu.my/id/eprint/73846 |
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