Sections 28 and 29 of Islamic Financial Services Act 2013 (IFSA 2013) impose statutory duties to Islamic Financial Institutions (IFIs) to ensure Shariah compliance and Shariah Governance implementations are consistent with Bank Negara Malaysia (BNM) standards and ruling determined by BNM Shariah Advisory Council. Previous studies found the biggest influence in increasing the growth of Islamic banking assets is financing to deposit ratios and IFSA 2013 that has contributed to the robust development of the Islamic banking industry. This study aims to examine the factor influencing asset growth of Islamic banking post IFSA 2013 in compliance with Sections 28 and 29 of IFSA 2013. Utilizing a quantitative methodology, this study examines the impact of Shariah compliant financing and Shariah compliant deposit to asset growth of Islamic banks in Malaysia. It uses financial data from annual report of 17 Islamic Banks from 2014 to 2023. The variables include assets growth as dependent variable, Shariah-compliant financing and Shariah-compliant deposit as independent variables, while the bank age and total assets as control variables. The panel data collected from the annual report was analyzed using E-views software and regression analysis. The regression analysis revealed that the Shariah compliant financing and the Shariah compliant deposits significantly influence the asset growth, while age and size did not significantly impact the asset growth. These findings offer valuable insights to the literature on the significant relationship between Shariah compliant financing and Shariah compliant deposit of 17 Islamic Banks regulated under IFSA 2013 and asset growth of Islamic banking in Malaysia. The result of this study also significant to the industry as crucial elements to achieve market shares of Islamic banking asset.

错误:搜索内容不能为空,请输入英文关键词
错误:关键词超出字数限制,请精简
高级检索

Factors Influencing Asset Growth of Islamic Banking in Malaysia Post Islamic Financial Services Act 2013

  • Azlin Suzana Salim,
  • Siti Noradibah Md. Zain,
  • Muhammad Azizur Rahman Ramli,
  • Mohamed Haneef Sulaiman Mohamed Haleem

摘要

Sections 28 and 29 of Islamic Financial Services Act 2013 (IFSA 2013) impose statutory duties to Islamic Financial Institutions (IFIs) to ensure Shariah compliance and Shariah Governance implementations are consistent with Bank Negara Malaysia (BNM) standards and ruling determined by BNM Shariah Advisory Council. Previous studies found the biggest influence in increasing the growth of Islamic banking assets is financing to deposit ratios and IFSA 2013 that has contributed to the robust development of the Islamic banking industry. This study aims to examine the factor influencing asset growth of Islamic banking post IFSA 2013 in compliance with Sections 28 and 29 of IFSA 2013. Utilizing a quantitative methodology, this study examines the impact of Shariah compliant financing and Shariah compliant deposit to asset growth of Islamic banks in Malaysia. It uses financial data from annual report of 17 Islamic Banks from 2014 to 2023. The variables include assets growth as dependent variable, Shariah-compliant financing and Shariah-compliant deposit as independent variables, while the bank age and total assets as control variables. The panel data collected from the annual report was analyzed using E-views software and regression analysis. The regression analysis revealed that the Shariah compliant financing and the Shariah compliant deposits significantly influence the asset growth, while age and size did not significantly impact the asset growth. These findings offer valuable insights to the literature on the significant relationship between Shariah compliant financing and Shariah compliant deposit of 17 Islamic Banks regulated under IFSA 2013 and asset growth of Islamic banking in Malaysia. The result of this study also significant to the industry as crucial elements to achieve market shares of Islamic banking asset.