Malaysian Islamic bank financial stability: a comparative analysis before and during covid-19

• المؤلف الرئيسي: Muhammad, Noor Fasihah
• التنسيق: أطروحة
• اللغة: الإنجليزية; الإنجليزية
• منشور في: 2022
• الموضوعات: HG Finance
• الوصول للمادة أونلاين: https://etd.uum.edu.my/10252/1/permission%20to%20use-ALLOWED.pdf; https://etd.uum.edu.my/10252/2/s828941_01.pdf; https://etd.uum.edu.my/10252/

At the end of 2019, the whole world confronted a vastly different type of crisis, that is COVID-19, which is still going on and impacted banking sector, especially Islamic banks. Thus, this study was conducted to examine the influence of bank-specific variables and macroeconomic factors on financial stability before and during COVID- 19 since it is essential for all financial institutions to maintain their stability as it plays an important role in the economy's growth. The variables include liquidity ratio (LIQR), profitability (PROFIT), asset quality ratio (AQR), capital ratio (CAP), staff efficiency (STAFFX), gross domestic product (GDP) and political stability index (PSI). By using E-views 12 software, the data obtained from the year 2012 until 2017 then is evaluated and interpreted. The Panel Data Regression Analysis was conducted in order to examine the factors that influencing the financial stability of the Islamic banks in Malaysia before and during COVID-19. The findings from this study revealed that only two variables were found to be significant with the financial stability of Islamic banks before COVID-19 which are AQR and CAP. While during COVID-19, there are four variables were found to be significant with the financial stability which are PROFIT, CAP, GDP and PSI. From these results, it was proved that before COVID-19 indicates Islamic banks in Malaysia are more stable than during COVID- 19. Meanwhile, the stability of Islamic banks during COVID-19 is decreased but less impacted.