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The influence of bank-specific and macroeconomic factor on financial stability of Islamic bank in Malaysia

Nor, Anis (2020) The influence of bank-specific and macroeconomic factor on financial stability of Islamic bank in Malaysia. Masters thesis, Universiti Utara Malaysia.

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Abstract

Financial stability is very crucial for every financial institutions as it will bring public trust and confidence in the whole system and at the same time contribute for a healthy and well-functioning economy of a country. Hence, financial institutions including banks need to maintain their financial soundness and stability as they play an important role in the economy. Thus, this study was conducted to analyze the relation of bank specific variables and macroeconomic factors such as Liquidity Ratio (LIQR), Profitability (PROFIT), Asset Quality Ratio (AQR), Bank Size (BS), Gross Domestic Product (GDP), Inflation Rate (INF) and Corruption (CORRUP) on the Financial Stability of Islamic banks in Malaysia. The data obtained from the year 2012 until 2018. The Multiple Regression Analysis was conducted in order to examine the factors that influencing the financial stability of the banks in Malaysia. The findings from this study revealed that only four variables were found to be significant with the financial stability of Islamic banks which are LIQR, PROFIT, BS and INF. From these results, it was proved that Islamic banks are able to withstand from economy crisis as GDP and CORRUP were found not significant with financial stability of Islamic banks. The results of this study are useful for bank managers, regulators and academician because its show the current economic situation and the recent financial condition of the banks.

Item Type: Thesis (Masters)
Supervisor : Mat Nor, Alias
Item ID: 9695
Uncontrolled Keywords: Financial stability, Islamic banks, Z-score
Subjects: H Social Sciences > HD Industries. Land use. Labor. > HD28-70 Management. Industrial Management
H Social Sciences > HD Industries. Land use. Labor. > HD58.9 Organizational Effectiveness.
H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Date Deposited: 04 Aug 2022 02:28
Last Modified: 19 Mar 2024 00:55
Department: Othman Yeop Abdullah Graduate School of Business
Name: Mat Nor, Alias
URI: https://etd.uum.edu.my/id/eprint/9695

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