Mohamad Zahid, Nur ‘Izzah and Che Arshad, Noraziah (2021) Evidence on Islamic Banks and Economic Growth: Experience in Malaysia. International Journal of Zakat and Islamic Philanthropy, 3 (1). pp. 90-97. ISSN 2682-7530

Preview

PDF - Published Version Download (275kB) | Preview

Abstract

The purpose of this paper is to contribute to the empirical studies of Islamic banking literature by examining the effect of Islamic banks’ factors on economic growth from the context in Malaysia. By using a panel regression, the secondary data of 11 local Islamic banks has been extracted from annual reports while the real gross domestic product (GDP) has been collected from an International Monetary Fund (IMF) within a period from 2012 until 2019. The paper presents a model which shows the relationship between the selections of seven variables in Islamic banks (total asset, total investment, total financing, total deposit, financing to deposit, non-performing financing, total zakat) to economic growth. Although it is insignificant, total zakat in Islamic banks appeared to be positively related to the Malaysian GDP representing economic growth based on the fixed effect regression result. Hence, this finding led to several interesting discussions, including the amount of zakat paid by Islamic banks which stimulates economic growth

Item Type:	Article
Uncontrolled Keywords:	Local Islamic banks, Economic growth, Total zakat, Panel data
Subjects:	B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc
Divisions:	College of Business
Depositing User:	Mr. Izhar Hj. Hashim
Date Deposited:	21 Sep 2025 04:52
Last Modified:	21 Sep 2025 05:01
URI:	https://repo.uum.edu.my/id/eprint/32429

Actions (login required)

View Item