Comparative Analysis of Islamic and Conventional Banks in CAMEL Model in Case of Malaysia

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Khasanjon Dodoev
Khasanjon Dodoev

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GJMBR Volume 18 Issue C6

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This comparative analysis aims to analyze the performance of Islamic banks and conventional banks in case of Malaysia during the period of 2006-2016. The financial performance will be measured through applying CAMEL ratio analysis. Additionally, two tailed ttest was also conducted via MS Excel in order to examine the difference in each components of CAMEL ratios between Islamic and Conventional banks. Overall, CAMEL model disclosed that there is not a significant difference in the financial performance between Islamic and Conventional banks. However, Islamic banks performed better and outstanding in terms of each component of CAMEL model compared with conventional banks. The secondary data which was collected from the financial statements of selected banking institutions. Indeed, this comparative research analysis compared the financial performance of Malaysian Islamic and Conventional banks with selected banks as samples during the study period.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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Khasanjon Dodoev. 2018. \u201cComparative Analysis of Islamic and Conventional Banks in CAMEL Model in Case of Malaysia\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 18 (GJMBR Volume 18 Issue C6): .

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GJMBR Volume 18 Issue C6
Pg. 29- 33
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: E58
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November 14, 2018

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English

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This comparative analysis aims to analyze the performance of Islamic banks and conventional banks in case of Malaysia during the period of 2006-2016. The financial performance will be measured through applying CAMEL ratio analysis. Additionally, two tailed ttest was also conducted via MS Excel in order to examine the difference in each components of CAMEL ratios between Islamic and Conventional banks. Overall, CAMEL model disclosed that there is not a significant difference in the financial performance between Islamic and Conventional banks. However, Islamic banks performed better and outstanding in terms of each component of CAMEL model compared with conventional banks. The secondary data which was collected from the financial statements of selected banking institutions. Indeed, this comparative research analysis compared the financial performance of Malaysian Islamic and Conventional banks with selected banks as samples during the study period.

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Comparative Analysis of Islamic and Conventional Banks in CAMEL Model in Case of Malaysia

Khasanjon Dodoev
Khasanjon Dodoev

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