Bank stability: the case of Islamic and commercial banks in Malaysia / Nur Fadilah Zakaria

The purpose of this study is to examine factors affecting bank stability such as bank size, return on asset, return on equity and liquidity risk in Islamic and Commercial banks in Malaysia. The sample in this study comprises 16 listed of licensed financial institutions in Malaysia by Bank Negara Malaysia for the period 2010-2019. The dependent variable in this study is bank stability that measured by Z-Score and was examined by panel data analysis using STATA Package. The findings obtained from the Pooled Ordinary Least Square (OLS) indicates that bank size and return on asset have positive relationship and are insignificant to the dependent variable which is the bank stability while return on equity has negative relationship and is insignificant to bank stability. However, liquidity risk shows negative and significant with bank stability.