The performance of Malaysian Islamic Bank during 1984-1997: an exploratory study

The Islamic bank Bank Islam Malaysia Berhad (BIMB) was analyzed for profitability, liquidity, risk and solvency, and community involvement for the period from 1984 to 1997. Financial ratios are applied in measuring these performances. T-tests and F-tests are used in determining their significance. Conclusions showed that BIMB is relatively more liquid and less risky than the group of 8 conventional banks studied. Analysis of the primary data explains why the supply of loans under profit sharing and joint venture profit sharing is not popular in Malaysia. Forty percent to 70% of bankers surveyed indicated that lack of knowledgeable selecting, evaluating, and managing projects is a significant issue.