Islamic Banks Outperform Conventional Banks in Malaysia, Boosting Profitability and Economy.
The article compares Islamic and Conventional banks in Malaysia from 2010 to 2018. It looks at factors like deposits, loans, and macroeconomic conditions to see how they affect bank profitability. The study found that total deposits help conventional banks make more money, while noninterest income is better for Islamic banks. Both types of banks suffer when loans aren't paid back. Surprisingly, events like the Chinese stock market crash didn't impact Malaysian banks during this time. Overall, Islamic banks performed better than Conventional banks in terms of profitability. These findings can help banks, investors, and policymakers make decisions to improve bank performance in the future.