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Asset and liability management : comparative study of conventional and Islamic banks in Malaysia

Htay, Sheila Nu Nu and shuib, Siti Sufiya (2011) Asset and liability management : comparative study of conventional and Islamic banks in Malaysia. In: International Islamic Banking, Finance and Investment Conference, 19-20 December 2011, Hotel Istana, Kuala Lumpur, Malaysia. (Unpublished)

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Abstract

This study evaluates the asset-liability management of both Islamic banks and Conventional banks in Malaysia, pre and post global financial crisis 2007/2008. The purpose of this study is to verify whether or not there are any significant difference between the Islamic banks in Malaysia than its conventional counterpart in terms of interest (profit) rate risk, credit risk and liquidity risk management, before and after the global crisis as the Islamic banks operate under different framework and fundamental. This study applies descriptive method of research and independent sample t-test. The findings of this study suggest that the Islamic banks and the Conventional banks are not different in adopting interest (profit) rate risk management when Net Interest Margin and Net Interest Income are used as variables. Besides that, the study suggests that the Conventional banks and the Islamic banks are not different in adopting credit risk management when Equity to Total Asset is used but they are different in adopting credit risk management when Equity to Net Loan is used. In addition to that, the Conventional banks and the Islamic banks are not different in adopting liquidity risk management when both Liquidity Ratio and Net Loans to Total Assets Ratio are used.

Item Type: Conference or Workshop Item (Full Paper)
Subjects: H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes: Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr. Sheila Nu Nu Htay
Date Deposited: 14 Dec 2012 13:42
Last Modified: 31 Oct 2013 10:34
URI: http://irep.iium.edu.my/id/eprint/26269

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