Within able to increase their Islamic bank’s competitiveness

Within this study, we examine an independent variables
of internal factors that may significantly affect the performances of Islamic
banks. Our research can be used as a reference for Islamic banks to manage and
control over the independent variables that bring negative effects to its performances.

Furthermore, this study attempts to extend and add on to
existing studies by covering Islamic banks in Malaysia. This study emphasizes
on the internal factors that affecting performance of Islamic Banks in Malaysia.
Our research can be used as guideline for the Islamic bank managers to manage
and plan their business strategic accordingly to maximize profits. Hence, banks
managers are able to increase their Islamic bank’s competitiveness and reduces
the probability of its failure, as they are able to make better decisions by
referring to this guideline. 

This study also could contribute significantly to the
formulation of policies. It is useful to the policymakers and regulators in
making decision and formulating policies that will indeed maintain the
soundness of banking system and benefit the economy. Moreover, the result of
this study also can be treated as extra information to the investors. By
knowing the internal factors that could influence performance of Islamic banks,
investors could make a better investment decision and able to identify which Islamic
banks are good for investment through different economics conditions.  

From an undergraduate’s perspective, this study is
useful as it not only provide general knowledge regarding the Islamic banking
industry, but also provide better understanding and clearer picture on how to
internal factors affects the performances of Islamic Banks . Students are able
to discover internal factors (profitability, liquidity, asset quality) that
would influence Islamic bank’ performance. In short, students are able to make
a comparison between the internal factors that affect performance of different Islamic
banks.