Financial performance of Islamic banks in Malaysia during the Covid-19 Pandemic

Mohd Ariffin, Noraini and Abu Talib, Nori Yani and Mohd Sofian, Fatimah Noor Rashidah (2024) Financial performance of Islamic banks in Malaysia during the Covid-19 Pandemic. Journal of Islamic Finance, 13 (1). pp. 13-24. ISSN 2289-2109 E-ISSN 2289-2117

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Abstract

The purpose of this study is to examine the financial performance of Islamic banks in Malaysia during the Covid-19 pandemic. The methodology of the study are data from the annual reports of 15 Islamic banks in Malaysia that were collected for the years 2019, 2020, and 2021. The banks’ performance was evaluated based on financial ratios consisting of profitability ratios, liquidity ratios, solvency ratios, and efficiency ratios. Findings of the study is the Islamic banks were able to manage their liquidity positions during the years 2019, 2020, and 2021. This study extends the literature by examining the financial performance of Malaysian Islamic banks before and during the Covid-19 pandemic. Islamic banks can improve their performance by becoming more competitive in the current environment of the financial industry. They need to take preventive measures in all their activities to prevent any unprecedented events in the future. More importantly, Islamic banks need to uphold Islamic ethics throughout their business operations to ensure compliance with Shariah. This study also provides practical implications for regulators and policymakers in the context of unprecedented uncertainty resulting from the Covid-19 pandemic. This is a pioneer empirical study that focuses on the financial performance of Malaysian Islamic banks before and during the Covid-19 pandemic.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Financial performance, Covid-19, Islamic banks
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Accounting Kulliyyah of Economics and Management Sciences > Department of Finance Kulliyyah of Economics and Management Sciences
Depositing User:	Fatimah Noor Rashidah Mohd Sofian
Date Deposited:	08 Jan 2025 09:48
Last Modified:	08 Jan 2025 09:48
URI:	http://irep.iium.edu.my/id/eprint/117379

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