The factors that affect the profitability of Islamic and conventional banks in Malaysia / Syafirulhaizal Affif Mohd Faezal

This research will demonstrate the profitability of Islamic banks in Malaysia to that of conventional banks in order to illustrate the superiority of Islamic banks. In traditional banks, money is treated as a commodity, and the money is loaned out at a profit to generate revenue. Islamic banking products, on the other hand, are often backed by assets and include asset renting, asset trading, and profit-and-loss participation, among other features. Despite this, clients and banks are expected to have a credit or debtor relationship. Malaysia's banking sector includes 27 commercial banks and 18 Islamic banks, for a total of 58 institutions. Once this has been established, the secondary data was acquired from two conventional banks (Maybank and Public Bank), as well as two Islamic banks (Bank Islam and Bank Muamalat), which retraced data from 2009 to 2019 and resulted in a total of 40 sets of information. To determine whether or not the cost of funds, the cost of labour, the cost of capital, and interbank lending have an impact on the profitability of Islamic and conventional banks, this study was conducted. Furthermore, the subject of how this differs between Islamic and conventional banks in Malaysia must be addressed as well.