Speaker
Description
In Malaysia's dual-banking system from 2015 to 2024, this study looks at how being foreign and bank-specific factors affected the success of local and foreign Islamic and conventional banks.The study looks at four types of banks: domestic conventional banks, domestic Islamic banks, foreign conventional banks, and foreign Islamic banks. It uses data from Fitch Connect and panel regression methods.Findings show that foreign conventional banks do much better than domestic ones, which supports the Global Benefit Hypothesis. However, foreign Islamic banks don't show any major benefit, which could be because they have been in the market for less time and have fewer operational restrictions.Different factors have different effects on different banks. For example, in Islamic banks, size helps local institutions, while age hurts foreign ones. In conventional banks, age helps foreign institutions, while size doesn't matter.Credit risk usually hurts the performance of both local and international conventional banks. Liquidity, on the other hand, hurts only foreign conventional and Islamic banks.The results have important policy and management effects. They show that foreign Islamic banks need targeted regulatory help, better credit risk management across all types of banks, and better liquidity management techniques for foreign institutions.This study adds to the small body of research on Islamic banking in other countries and offers ways to make Malaysia's dual-banking system more competitive.
