Islamic Banking Act 1983 defines Islamic Banking Business as banking business whose aims and operations do not involve any element which is prohibited by the religion of Islam. To date, Islamic banking has grown rapidly over the past decade, and its banking segment has become systematically important worldwide. In order to increase your understanding of the differences between Islamic and conventional banks, you are required to select one Islamic bank and one conventional bank that are operated in Malaysia. Access the information relating to performance of the bank using profitability, efficiency, debt management and liquidity criteria from year 2016 to 2019. Carry out a comparative analysis of the performance of the two banks.

Criteria:

1. Introduction on the selected Islamic and conventional banks

2. Differentiate between Islamic and conventional banks in terms of their objectives, operation and regulatory framework.

3. Computation and analysis of profitability ratios for the years 2016 and 2019

4. Computation and analysis of efficiency ratios for the years 2016 and 2019.

5. Computation and analysis of liquidity ratios for the years 2016 to 2019

6. Computation and analysis of debt management ratios for the years 2016 and 2019

7. Discussion and comparison between the banks performance.

8. Summary