ISSN: 2225-8329
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This study's objective is to assess the return on assets (ROA) performance of all fifteen (15) Islamic banks in Malaysia that are eligible to use panel-specific data between the years 2011 and 2020. A data assessment methodology and all relevant additional resources, such as Eikon Thomson Reuters and the bank's annual reports, have been utilized for this study. When regressing the balanced panel data, the Pooled Ordinary Least Squares (POLS) Model employs the EViews 12 software to analyze. According to the conclusions of this research, there is a significant relationship between the performance of Islamic banks in Malaysia from 2011 to 2020 and the ratio of net loans to total assets (NLTA), shareholders' equity ratio (SER), bank size (LNBS), and gross domestic product (GDP). Since the banking sector is a significant contributor to the national economy, effective bank management is essential to ensure that the Islamic bank is always profitable by minimizing risk and losses caused by internal and external factors. In addition, most prior research has focused on conventional rather than Islamic banks, necessitating this investigation into the factors that affect the profitability of Islamic banks in Malaysia.
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In-Text Citation: (Romli et al., 2022)
To Cite this Article: Romli, N., Anuar, W. N. S. A. H., Isa, A., Mohamed, S., Haris, S., & Hassan, N. N. N. M. (2022). The Internal and External Factors That Determine the Performance of Islamic Banks in Malaysia. International Journal of Acdemic Research in Accounting, Finance and Managment Science, 12(3), 330–343.
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