Islamic banks in Malaysia thriving with innovative profitability determinants.
Islamic banking in Malaysia has been growing since the establishment of Bank Islam Malaysia Berhad in 1983. This study looked at what factors affect the profitability of Islamic banks in Malaysia. They studied 8 popular Islamic banks from 2010 to 2015. The factors they looked at were bank size, capital adequacy, liquidity, credit risk, and expenses management. They found that these factors influence the profitability of Islamic banks in Malaysia.