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Comparison of Conventional and Islamic Banking in Aspect of Profitability
(Majoring In Return of Investment (ROI) and Net Interest Margin (NIM))
In Malaysia
Nur Ra’aina Izaty binti Mohamad Rafi
Supervisor: Dr Hazman bin Samsudin
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
This paper discusses about the comparison of conventional and Islamic banking in
aspect of profitability in Malaysia (majoring in Return of Investment (ROI) and Net
Interest Margin (NIM)) by using the Autoregressive Distributed Lag (ARDL) over the
period 2002 to 2017. Among the components of measuring the profitability used in
this panel data are capital adequacy, payout ratio, earning per share, operating
margin, and dividend. The estimations that were used are 10 banks of Malaysia which
is 5 banks from the type of conventional banking and 5 other banks from the type of
Islamic banking. This study also shows the effects of the comparison of the types of
banking in short term and long term.
1444 | UMT UNDERGRADUATE RESEARCH DAY 2018