Domestic Islamic Banks Outperform Foreign Counterparts in Malaysia Study
Islamic banks in Malaysia were evaluated to see how well they were doing. The study looked at factors like return on assets, return on equity, and profit margin. They found that the size of the bank and how much money they had affected their profitability. Operating expenses and financing also played a role. Interestingly, whether a bank was foreign or domestic didn't seem to make a big difference in how well they did. Domestic banks were found to be more profitable and efficient, but also riskier and less liquid than foreign banks. Foreign banks had better quality assets than domestic banks.