Factors Determine Islamic Banking Performance in Malaysia: a multiple Regression Approach

Recommendation 

As recommendation, it is necessary for the bankers to manage the bank’s credit risk 

as it is important for the government to maintain the inflation at a lower level so that will 

support the deepening of the Islamic financial system in the country. 

There are at least two limitations as appear in this study. First, this study does not 

differente between local and foreign Islamic banks, and secondly, the method of analysis 

used does not incorporating the time aspect. Therefore, the recommendation put here for 

future studies in this topic are: (i) segregating the local and foreign banks in the analysis 

and (ii) to use more sophisticated method of analysis in order to get more robust results.