Abstract

This study figure out the most significant financial ratios to evaluate and investigate the performance efficiency and the differences between Islamic and conventional banks in Malaysia. The financial ratios are the main resource to study the institutions in financial area which are used to study the performance of two Islamic Malaysian banks, also comparing the Islamic and conventional banks in Malaysia. Financial ratios are widely used to study the banking system features specially the difference between two different banking systems. The study identified twelve the most significant financial ratios out of twenty three financial ratios. Four of the twelve financial ratios are similar to the significant financial ratios that obtained from previous studies.

Keywords:

Discriminant analysis, fast-MCD estimator, financial ratio, Islamic and conventional banks, Wilks'Lambda,

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    PMid:19942109    

Competing interests

The authors have no competing interests.

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