[SOLVED] Statistics and Data Analysis

This assignment involves a statistical analysis of a given dataset, including calculation of mean, standard deviation, variance, range, minimum value, maximum value, and percentiles. The data is provided in a table format, and the student is expected to calculate various statistical measures and provide a summary of the results.

CONVENTIONAL
BANKING

Table of Contents
TITLE..............................................................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
Overview of the Research......................................................................................................1
Background of the Research...................................................................................................1
Problem statement..................................................................................................................2
Purpose of Research...............................................................................................................3
Research Aim.........................................................................................................................3
Research Objectives...............................................................................................................4
Research Question..................................................................................................................4
Research hypothesis...............................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Roles of society and socio-economic factors to enhance conventional banking system in
Malaysia.................................................................................................................................6
2.2 Separate base or model regarding the conventional banking structure............................9
2.3 Impact of socio-economic factors' contribution in conventional banking growth.........11
2.4 Key elements to growth and development of conventional banking structure in Malaysia
..............................................................................................................................................14
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................15
CHAPTER 4 DATA COLLECTION AND FINDINGS...............................................................23
RESULTS.............................................................................................................................26
Discussion:...........................................................................................................................65
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................67
REFERENCES..............................................................................................................................71
APPENDIX....................................................................................................................................73

TITLE
“To analyse the socio-economic contribution of conventional banks in Malaysia.”
CHAPTER 1: INTRODUCTION
Overview of the Research
Banks and financial institutions are considered as a party or body that provides financial assistance to business, corporates,
individuals and groups to assess the requirement of business function, needs of individual or groups, providing care and safety of
deposits or savings of individuals. Conventional banking system is a common banking system followed by banking industries across
the world. Banking system of Malaysia is influenced by mainly two banking system; one is conventional banking system and second
is Islamic banking system. Traditional or conventional banking system is centralised around generating monetary reserves,
profitability and earning by spending financial resources in the form of loans, advances and bond to corporates. Revenues generated in
the form of interest which is considered as profitable factor and the analysis mainly associated with determining. Interest and profit-
oriented banking system is being widely considered in conventional banking system. Profitability is the main distinguish factor that
diversify the conventional banking system to the Islamic banking system. Mortgage loans, housing loans, card facilities, securities,
schedule payments, payment of interest and repayment of the principle are the main functions and services provided under
conventional banking system in Malaysia. Financing, banking facilities are mainly focused around getting more revenues and profit
through interest. The conventional baking system is analysed in respect of JOHAR city, Malaysia.
Background of the Research
Malaysia is one of the Asian country that retain top position in finance sector subject to provide finance assistance for Islamic
finance apart from the Middle east. The research elaborates the concept of banking. Conventional banks work as normal banks and
provides type of services as lending, depository and credit facilities. It is observed that the Islamic banking system abolish the interest
system and do not adopt the interest policy. Socio culture of banking industry in Malaysia sustain potential to those organisations and
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corporates interested in taking loans and lending from commercial banking. These factors have positive impact subject to growth of
conventional system of banking in Malaysia. Most of the customers and community groups are willing to get low interest rates lending
and high interest rate of return subject to their investments. Banking satisfaction towards associated with increasing competitive
situations and the satisfaction due to focusing on intentions. Interest avoidance and theoretical framework of Islamic banking is the
base principle to enhance the banking structure and encourage profit and trade. Even having nil interest policy in Islamic banking
system, it is considered less profitable and less revenue generating system in comparison to conventional baking system. Socio
economic impact upon contribution was recorded increased in subject to enhance the growth of conventional baking system in
Malaysia. The potential factors and aspects associated with conventional banking structure are explained and evaluated on the basis of
social economic culture and system.
There are type of conventional banks working in Malaysia are working efficiently such as ABN banks, Bank of America,
Citibank, Standard Chartered and the Union bank of Switzerland. These banks have established their septate banking structure form
the Islamic banking system. A window system has been developed to manage the operate financial activities and transactions.
Conventional banking has been achieved a septate position subject to providing services and the products according to individual
needs, requirements and corporate requirements. It is analysed that various type of measurement tools and aspects were considered to
highlight the key emerging factors in conventional banking that assisted to create a separate base in Malaysia.
Problem statement
This research is formed to analyse the aspect and structure of conventional banking in JOHOR city in Malaysia. There are two
Major banking systems are found in Malaysia such as Islamic banking and conventional banking structure. It is observed that
conventional banks have faced lots of challenges to Islamic banking culture. Conventional banks had to go through tough
circumstances during the financial crisis. Lack of interest nature reduced the sustainability of Islamic banking that impacted the rights.
Tendency of people are shrieking towards traditional banking system in Malaysia and this was the main challenge in front of
commercial banks to enter in Malaysia. For economic, infrastructure and industry growth and development it was important to
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introduce different commercial and non-commercial banking system to Country. The Central bank of Malaysia build up a sustainable
base with significant changes among its subsidiary banks. The challenges at initial stage faced by conventional banking industry will
be separately highlighted in this report. As per the annual statistical report of banking statistics Negara Malaysia (2016), the
contribution of assets was counted as approximately $65.6 billion with average growth rate of 18 to 20% at annual basis. It indicates
towards the Malaysian domestic culture diversified with conventional banks. The major challenge is to develop a conventional
banking structure and financial institutions in Malaysia that was completely depended on awareness of Public and other financial
institutions, public education and campaigns are required to clarify the concept of conventional and its futuristic benefits to them.
Purpose of Research
This purpose of this research project is to elaborate the conservative aspects of conventional banking system and ruin the
myths and conflicts between the traditional banking system comparative to Islamic banking system. On the basis of critical analysis
and review it is tried to analyse the impact of socio-economic factor in terms of dividing the plans and structure of business. The
importance of conventional banking system is subject to enhance the profitability and revenues in JOHOR city, Malaysia. There is
lack of clarity found in different type of research regarding the banking culture in Malaysia. Various discussions, Arguments and
matters were created in terms of diversify the nature of banking system in Malaysia but it do not provide proper Justification and
conclusive information regarding. This research is prepared to elaborate a separate concept and evaluation of conventional banking
system in Malaysian banking industry. Users will be able to correlate the traditional banking and Islamic banking system in terms of
maintaining the customer satisfaction and improving the profitability by considering the concept. Socio economic contribution is
evaluated and counted in order to improve the conventional banking structure of in Malaysia.
Research Aim
Aim is considered as cumulative or summarised statement regarding attain the research objectives and criteria. It helps to
validate the reason of acquiring the research and conducting the plan with specific structure. It is a document that defines the major
objective and purpose of assessment of research. As the above research is formed to address the mean value of customers and evaluate
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the contribution of socio economic to emphasise the conventional banking structure in Malaysia. A clear description and analysis
formed to define the banking system considering different type of groups whether, individual groups and corporates.
Aim of this research is - “To analyse the socio-economic contribution of conventional banks in Malaysia.”
Research Objectives
A clear information, summarisation and statements that present clear vision of research or plan are considered as research
objectives. Information and details are organised in the sequential manner to justify the investigation. Variables and relevant factors
are analysed with proper direction and clear basis of the statement. The objectives are considered in terms of analysing the
performance related to deliver the required criteria in specific and significant manner.
 To identify the roles and contribution of individual, group and corporates to emerge the conventional banking system in
Malaysia.
 To examine a separate structure to understand the conventional banking.
 To analyse the performance of conventional banks after getting contribution from society
 To find out the key elements subject to emerging structure of conventional banking in Malaysia
Research Question
Research questions remain based upon the objective that clarify the clear vision and direction to meet the criteria of research.
All the research questions are elaborated in descriptive manner in literature review section. Research questions helps to frame the
research objective in predetermined and classified format to understand the key characteristics of research aim.
 What are the roles of society and socio-economic factors to enhance the conventional banking system in Malaysia?
 Is there any separate base or model regarding the conventional banking structure?
 Whether any significant impact fall upon conventional banking structure after getting contribution form socio-economic
factors?
 What are the key elements associated with development and growth of conventional banking structure in Malaysia?
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Research hypothesis
A research based hypothetical analysis also carried out by implementing different type of hypothetical analysis such as
descriptive analysis, T-test, reliability test, probability value, r-square, result analysis and discussion. It is evaluated that the derivative
ad the variable was based upon the analysis of realistic data and segmentation test that are taken on the basis of sample-based
overview and aspects from public. To analyse the impact of socio-economic factor the analysis of index list provided by central banks
are considered in research.
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CHAPTER 2: LITERATURE REVIEW
Literature review is a review of article, scholar paper or theoretical description given by a writer or specialist. It is considered
as a secondary source of getting information and analyse the subject in own understanding and knowledge. It is a very important part
of research that validates the academic work. Most of the literature review are found as secondary sources and reported original
experimental that appears in publications.
2.1 Roles of society and socio-economic factors to enhance conventional banking system in Malaysia
Banking industry in Malaysia influenced by both Islamic and traditional banking culture. At global level conventional banking
nature is a common banking structure assist manager for better financial control and management. Most of the consumer groups and
corporates interest and tendency is shrieking towards conventional banking due to wide options for financial growth. Different type of
financial instruments and products are offered to customers in conventional banking system. Clients can avail the offers and plans as
per their requirement. Customers prefer conventional banking due to its diversity of products and flexible loans of and of the main
aspect considered essential in terms of gross proceeds. Loans, mortgage, credit cards, short term and long-term loans credit are the
main facilities provided by banks. All the products are retaining the same nature and revenues from these products are earned in the
form of interest. Rate of interest drive as per nature of products and services. Home financing and the facilities remain more flexible
and strong in terms of providing financial help to individual and social economic project. Restrictions and guidelines are more strict
and comprehensive in terms of getting financial credit from banks and financial institutions. Revenues from lending and interest
income are prohibited at some certain limits.
Relations of stakeholders, clients and customers get increased due to conventional banking system. There were some financial
agreements between the conventional and Islamic financial institutions that played significant role in order to maintain effective and
efficient customer relations. After global financial crisis lots of financial challenges faced by conventional banks and had to struggle to
maintain the social economic value among customers, clients and stakeholders. Society put interest subject to build an effective
financial structure for economic growth and development. Government reduces the burden and legislation to encourage the household
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loans and credits. There was a particular stability and performance was recorded in terms of determining the nature and deviation for
managing the principle for Shariah. Market concentration, structure, risk aversion and size are some conventional margins that affect
the scope of marketing and the manageableness to deal with financial challenges and encouraging the scope of conventional banking
system.
As per report Market share of conventional securities (2016) Bank Negara Malaysia which is a central bank of Malaysia
published a report regarding the financial stability and payment. This report highlights the major issues and the finding regarding
analysis of financial capacity with circular way. The development initiatives taken by conventional banks for making better financial
structure of economy and regulatory are considered in this context. It is analysed that the services and the formation process was also
along with social welfare and government project that assisted the sustainable financial structure and promoting the interest payment
system with safety and continuous changes. It is analysed that conventional insurance plans and commodities also follow positive
impact subject to determining the value of customers and satisfactory elements.
It is analysed that various projection and evaluations were counted in terms of engaging stakeholders and members for better
evaluation and control. Society contribution to conventional banks increased by 12.5% and was counted as 76.2% with total takaful
business in Malaysia. While considering the payment ratio and interest share form different segments were counted fluctuating it is
analysed that various challenges and parts were analysed in terms voiding the variable factors and share price with 57.8% of total
gross family takaful contribution Active role of operations subject to supporting government and the introduction for home financing
schemes get more exploratory and conservative. Resulted this the conventional trade finance share was calculated as 3.4% RM50.3
billion. Conventional insurers or re insurers were counted stable in terms of exceptional circumstances. It contains the retakful
capacity which remain stable in conventional banking system. It is analysed that the core activities are analysed subject to analysed
with more significant and specific manner. Foreign exchange and rates were also counted more effective subject to manage the foreign
regulations. Stakeholders invested in debt securities that enhanced the contribution to conventional banking sector in Malaysia. The
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domestic FX market record lower that effected the flex rate and the average daily rate and turnover of USD 8.1 billion and the 20.6%.
the capital adequacy ratio of conventional acceptance are analysed in term of making the lawful consideration and the flex method.
The General contribution was recorded in terms of exceeding the life insurance and the excess income over the outgo for the
new business premiums and the contributions. The underwriting profit was evaluating the general profit for managing the gross
domestic and the predictability of claims and the rations for various matters. Gross direct premiums also get increased due to claim
ratios and the capital adequacy ratio. Impaired loans and ratios of business sector also get increased by 3-8%. these figures show the
positive growth rate and the diversification in order to bifurcate the functions and the management operation for the dividend payable
facilities and the ratio of return on assets. The structure of the banking in Malaysia get increased by 3 to 5%. Net risk weighted capital
ratio also get increased due to interest rates and the common equity tire capital and the capital ratio. Return on assets and the net
impaired financing ratios are considered more voidable and constructive way to elaborate the financial structure of conventional
banking sector and the management roles. It is considered that the micro economic programs and the importance were counted
religious sensitiveness of the Muslim. It is seen that after introducing the interest banking sector growth rate increased form last two or
three years. Capital structure and banking fictions was supposed to sponsor the viability and the conductibility of file structure and
analysing the factors related to different derivatives and variables. Type of socio economic factors were associated with conventional
banking such as;
Customer's interest and attitude towards loans and credit-based banking: Most of the customer groups show diverse
attitude towards bank loans and credit services. This is one of the socio-economic factor that affect the mind set of customers and
organisations.
Traditional approach subject to loans and advances: A traditional approach and aspects become the barrier subject to adopt
new policies and changes in organisations. This socio-economic factor engages customers with the traditional banking and financial
structure.
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Herd Behaviour: It is observed that most of the individual and groups relay on existing customers or past experiences. The
stock level is centralised around making the structure of conventional banking by ratio of herd behaviour and applied theories.
Market experience: this is a favourable and effective socio-economic factor considered in conventional banking structure.
Organisations be able to understand the nature subject to generating the finance requirement.
Reference groups: this socio-economic factor affect the inters of referenced groups. Suggestions, advises and concepts are
determined on the basis of referenced customer groups. This enhanced the nature of conventional banking assumption.
2.2 Separate base or model regarding the conventional banking structure
Structure is considered as a base that help in aligning the departments and sections of any entity or organisation with a
particular motive. Commercial banking and conventional banking are similar in nature. Wide range of products in commercial
banking is the only difference creating factor that created diversity form conventional banking system. Malaysia has developed dual
financial system by considering requirement of different religion, communities and individuals. Insurance, money market and capital
market are the essential element of conventional banking structure. There are five septate conventional banks are categorised in
Malaysia as investment banking, wealth management and the and window system that offer Islamic financial products.
As per Charap and Cevik (2011) conventional banks has established their separate existence in terms of managing the bearing
instruments and the banking adherence and the equity participation. In equity participation was measured comparative to investment
banking. It is analysed that the banking structure in Malaysia started growing after commencing the different financial activities such
as providing loans, credits, short terms credit facilities. The most important part of the conventional banks is that they used to take
deposit from savers and investors and used to pay interest on some of these accounts in the desire of earning reliable amount of yield
in the form of return. On the other hand, they used to lend all these collected capital to borrowers to retain interest on them
accordingly. By doing this, conventional banks used to make profit from the spread among the rate that used to pay to depositors and
on that rates that they receive from the borrowers. This ability of the banks to pool deposits from plenty of sources that can be lent to
various borrowers to create the flow of capital those are characteristic of banking operations. In order to increase maximum profit,
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conventional banks use classical theories of the firm for this purpose, they used to consider profitability, liquidity and safety as
primary factors.
Capital structure and keeping money fictions guessed support the feasibility and the conductibility of record structure and
dissecting the elements identified with various subordinates and factors. The most vital piece of the customary banks is that they used
to take store from savers and speculators and used to pay enthusiasm on a portion of these records in the longing of winning
dependable measure of yield as return. The most vital piece of the ordinary banks is that they used to take store from savers and
financial specialists and used to pay enthusiasm on a portion of these records in the craving of procuring solid measure of yield as
return. Outside trade and rates were additionally checked more successful subject to deal with the remote directions. Malaysian money
related framework limit and the budgetary intermediation jobs subject to economy are canvassed in this report. Market focus,
structure, hazard avoidance and size are some ordinary edges that influence the extent of promoting and the reasonability to manage
money related difficulties and empowering the extent of customary keeping money framework. Protection, currency market and
capital market are the basic component of ordinary managing an account structure.
According to Zeitun, (2012) conventional bank has contributed enormous contribution to make the banking structure smooth
and flexible at global level. Equity based system was one of the essential principle introduced under the structure of conventional
banking. Conventional counter parts also analysed with in more comprehensive way to determine the assets evaluation and control for
debts and the instruments. Some factual aspects were commenced while implementing the conventional banking system in Malaysia
and commercial banks in Johor. The structure of banks was reformed again subject to analyse the absorbed rate of alternatives and
valuation changes. More over the information are analysed and emphasized subject to deliver the equity base and the market valuation
techniques. An Absorption rate was changed to make the liquidation market more viable and transparent.
As per Yusniza Kamarulzaman and Azian Madun, (2013) Type of guidelines and commencements made under the banking
regulation act 2001 that impact the conventional banking structure in Malaysia. There was lack of consistency found in previous
banking system that was overcome after commencing new guidelines and rules. Huge contrast recorded in terms of determining the
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changes in tax rates and interest rates for managing the market structure. Islamic products were the main products and services
provided by most of the banking sector. Tendency of different groups were centralised around managing the expertise and scope was
centralised around making the structure viable and flexible in terms of developing the structure at next level. Financial crisis was the
critical matter in terms of financial instability in international economic market at global level. In 2007 to 2010 it is analysed that bank
has specified the risk factors and the intermediation approach subject to financial instability and market crisis. It was difficult for
Malaysian banking system to reform the banking system after the financial crisis. New products and plans was introduced to review
the unstable structure business of organisation.
Khalid and et. al., (2013) presents the different definition of contemporary banking structure by considering the corporate
structure and the intellectual capital structure. The critical strategic assets for the effective operations and the success of the
organisation are considered effective and consolidated from the knowledge. Investment section the challenges in reforming the
business structure get more increased and viable in terms of monetary and financing market in Malaysia and other Islamic states. More
over the structure extend the solutions and the submission of ethical business structure for smooth functioning and managing the
departments. Intellectual base for financing and the structural control was introduced by organisation for more fluctuating manner.
Ben Slama Zouari and Boulila Taktak, (2014) discussed about the ownership and the control in conventional banking system,
it is analysed that the 49% of the contractual ownerships is retained by 41 banks and the institutional ownership. Criteria of ownership
to shareholders and stakeholders are sited to limited scale and it is analysed that the financial performance and the stability.
Correlation subject to analyse the performance and stability of banks are one of the major issue in structure of conventional banking
system.
2.3 Impact of socio-economic factors' contribution in conventional banking growth
According to Mahmood and Mohd Rosli (2013), Transformation and examination of growth and development are analysed in
terms of evaluating the growth of conventional banking structure. It is evaluated that the paper and the suggestions are analysed for
better evaluation and control. Infrastructure base and the sustainability economic growth was the main aspect considered in this
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section. The paper suggestions and the gross capital structure and the analysis associated with the analytical approach with
maximising the efficiency of capital market. A partnership investment system was introduced in conventional banking system to attain
the level of efficiency comparatively to Islamic banking system. It is analysed that the interim dividend and the goal was analysed
with respect of free banking system and it is analyse to bank interest menu, Integrated depth and accordingly myth was analysed with
critical aspect for managing the principle based ethical values. Claims and the banks are centralised to assure the relation with partners
and stakeholders.
Sharing investment helps in managing the departmental structure of conventional banking structure at separate level. The
income distribution and the analysis are analysed in terms of building a investment structure in mainly two ways as short term and
long term perspective. The system of distribution was analysed bit complex in comparison to customer base and failure of customer
projects. The relational spirit and the marginal sector of banking also enhanced by interest of general public and interest to
conventional banking. Conventional banking was mainly associated with determining the interest rates and evaluation of conventional
growth of business for more better and significant manner. It is observed that the banking industry in JOHOR was improving in terms
of management staff and administration levels.
Sarwer, Ramzan and Ahmad (2013) the economic development and the capital market was mainly associated with analysing
the investment and mobilization of conventional banking structure. Digital technology and artificial intelligence improved the
structure of conventional banking. It is expected that till 2020 the conventional banks will be able to attain global accounting period.
Debt financing and the investment banking assisted organisational structure to enhance the core values and the changes in for more
effective exchange and changing ratio and proportion. Resources and the effectiveness of the funding was mainly associated with
managing the the process and real sectors. Claim and interest and stability were mainly existed to risk and returns for various issues.
The risk and return are managed for more effective and affirmative manner. Risk free investments and activities related to financial
stability and process were also analysed for better growth and development of business. The institutional changes and the practices
were also analysed for completing the decision-making process. Huge number of people and society was engaged subject to enhancing
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the banking procedure in Malaysia. It was directly affected by investing banking structure that impacted the banking structure in
Malaysia. To determine the relation-based partnership and regulation it was determined that conventional banks shows the
comparatively separate part and evaluated with more different manner.
Profitability concept assisted to enhance the scope of business in more critical manner. There are some significant changes was
made in rates and charges of Islamic products and services. Financial intermediaries played crucial role to emerge the conventional
banking concept in Malaysia. It was important to aware people and society about the meaning of conventional banking system and
helping them in terms of understanding the policies regarding the products and plans under conventional banking sector. Rates and
changes are also analysed with effective and contemporaneous interest rates so that number of investors get attracted towards these
banks.
Financial developments and the economic growth was majorly associated with determining the main aspects and challenges for
determine the saving rates and charges. In Muslim countries interest considered as unavoidable liability that ruins the wealth and the
financial savings. Lots of changes and variations was made in terms of introducing some Islamic products in conventional banking
system. At earlier stage few international investors and corporate groups started in investing conventional banks. Corporates and
business industries were getting positive returns and outcomes in investment banking under conventional banking. This was the main
motivational factor that enhanced the scope of business. The contribution of socio economic factors was analysed positive in terms of
more significant and developing manner.
It is analysed that positive relations were maintained by Islamic baking structure rural and banking industry and management
commissions it was estimated that organisation have to develop the section the financial structure fir better understanding and growth.
In overall positive aspect and effective was analysed in Malaysian Banking industry. Slowly and gradually the scope of commercial
bank increased and it started to provide jobs facilities to public of JOHOR city, Malaysia. By mixed combination of Islamic banking
and conventional banking system stakeholders and contribute be able to correlated the financial challenges with adequate changes and
plans.
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2.4 Key elements to growth and development of conventional banking structure in Malaysia
According to Agénor and Montiel (2015) it is analysed that some potential factors and the techniques were analysed in terms
of emerging the macroeconomic reforms and programs. Technology and development areas are also some potential factors
compressed in order to deal with the financial and economic problems in organisation. Macroeconomic policies, anticipated elements
and requirements, empirical basis of evidence and the issues related to determining the policies and effective degrees are also counted
for managing the economic aspects for better capital market and structure. Financial aspects and the details are also required to
determine the financial challenges with more effective manner. Despite of making the effective capital structure and determining the
policy of making the project planning for setting new macroeconomic problems and the developing continentals. Different derivatives
and macroeconomic aspects and the future research are also analysed in terms of managing the interaction levels for more suggestions
and political impact with benefits.
The scree meed and the procedures are also analysed with economic reforms. Continental aspects and factors were also
measurable factors that impacted the interest of stakeholders in Malaysia.
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CHAPTER 3: RESEARCH METHODOLOGY
Research Methodology is an important aspect in carrying out research in a better way. There are various appropriate tools
which are used so as to provide complete schema of project in the best way possible. It is required that researcher should take proper
direction towards research process so that fruitful results can be obtained. The socio-economic contribution of conventional banks in
Malaysia has to be identified which can be effectively accomplish towards the use of various research tools and techniques. This helps
scholar to ascertain cause behind it and desired conclusion can be attained quite effectually (Fletcher, 2017). The research
methodology considering various approaches and tools are listed below which has been used by scholar for exploring topic-
Research Type
Research has to be conducted in proper direction so that researcher may be able to attain clarity regarding research in the best
way possible. It is essentially required that research type should be selected in a manner by which research questions can be addressed
(Ledford and Gast, 2018). There are two types of research which can be used for serving purpose such as quantitative and qualitative
methods. As the name suggests, quantitative method is used to provide numerical facts and figures so as to generate useful insight
about the topic in hand (Clandinin, Cave and Berendonk, 2017). The variables are usually expressed by utilising quantitative
technique. On the other hand, qualitative method means that motives are expressed and general theoretical framework is carried out
with ease.
In present research, scholar has used quantitative method of research so that facts and figures can be generated. This help
researcher to effectively ascertain outcome. The rationale behind choosing quantitative method is that they are universal and socio-
economic contribution could be easily obtained with regards to conventional banks in Malaysia in effective manner. Moreover, it has
wider scope of using it as specific questions and hypothesis can be easily formulated in a better way ( Quinlan and et.al., 2019). Large
sample can be taken because and statistical validity is attained by taking quantitative method (Jennings and et.al., 2018). It has been
applied as it provides clarity about what are the socio-economic contribution being imparted by conventional banks which takes
15

interest by charging interest and fees for services. It helps researcher to address research questions and attain proper outcome of
research.
Research Approach-
The research approach takes into account choice of research method to be used by scholar for getting proper directions towards
research in a better way. In simple words, it provides complete schema of research so that no hindrance in research process could
prevail. Hypothesis is formulated and as a result, research approach finds out way for providing clarity regarding acceptance or
rejection of hypothesis (Fletcher, 2017). There are generally two types of approaches such as inductive and deductive. Both have
similarities and differences as well and should be taken in accordance to research aim and objectives so that answer can be attained.
Inductive approach follows the pattern of making observations firstly and then hypothesis is tested. While, theories are provided or
proposed at end of research process (Xu and et.al., 2018). This approach of research aims for generating meanings from gathered data
for identifying patterns and relationship so as to build new theory in effective manner.
On the other hand, deductive approach has a different pattern as it develops hypothesis which is based on existing theory. After
that, research design is designed for effectively testing the hypothesis. In simple words, deductive implies reasoning from particular
aspect to general in a better way (Unschuld, 2018). The researcher has used deductive approach so that quantitative measures can be
taken into consideration. In relation to this, rationale behind taking deductive approach is that less time is required for completing
study and as a result, research outcome can be accomplished in a better way. Thus, for minimising risk in attainment of research
questions, researcher has used deductive approach for good results.
Research Design-
Research design is used to accomplish research in well-directed manner so that obstacles found in attainment of socio-
economic contribution of conventional banks in Malaysia can be found out. It can be analysed that for achieving concrete evidences
for research and draw valid conclusion, research design is implemented. In simple words, research design is like plan made by
researcher towards research purpose (Bilau, Witt and Lill, 2018). Scholar then executes the plan in well-structured way so that
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research questions can be answered in conclusive manner. Research design are of many types but mainly used are exploratory and
descriptive research designs. Descriptive design means that scholar can conduct deeper analysis in conventional banking structure and
assess socio-economic contribution in Malaysian economy (Broady-Preston, 2018). Well-defined research structure is required by
which in-depth analysis can be made. This helps to ascertain research outcome by taking into account all considerations which have
impact on socio-economic health of Malaysia particularly of conventional banking structure.
On the other side, exploratory research design is used for ascertaining subject of study from specific aspect. It is utilised for
exploring research questions and does not direct to attain conclusive outcome of research (Meredith and et.al., 2018). It initiates better
understanding of problem being identified and as a result, direction could be changed by scholar so that issue can be examined from
various perspectives (Shrivastava, Shah and Navaid, 2018). In current study, researcher has used exploratory design for effectively
exploring the subject and attain outcome in the best way possible. Rationale behind selecting exploratory research is that whole
problem can be understood from various perspectives. Furthermore, directions of research can be changed for getting new or useful
insight about research. Hence, exploratory design has been used by researcher for exploring subject.
Research Philosophy-
Main aim of research philosophy is to effectively deal with source, nature and development of knowledge (Mansell and
Huddy, 2018). In other words, it carries belief about ways by which data must be collected, used and then analysed for better results. It
means that assumptions are made with relation to sources and nature of knowledge which effectively serves for formulating research
strategy. There are two types of research which can be used for research purpose (Stevenson, 2018). They are interpretivism and
positivism for attaining knowledge quite effectively.
Sampling-
Sampling is effective way for gathering desired data in the best way possible. Since, all the information present in the universe
cannot be taken, sample is being taken for attaining data with ease (Mohamad and et.al., 2017). Collection of each and every data is a
tedious and time-consuming affair and hence, to resolve the same, sampling is used for saving time and provide quicker results in
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effectual manner. In current research, 30 managers of conventional banks of Malaysia have been taken so as to gather data and serve
for research purpose. Managers have been taken for sampling purpose as online questionnaires are being circulated to them for getting
desirable and accurate responses. The questionnaire is used as it provides effective manner to collect data in short span of time.
Furthermore, it is an economical method to gather data (Mackey and Gass, 2015). This helps researcher to collect desired amount of
data which is used as a representative of whole population.
Sample population is taken and questionnaires are being issued to them. The results taken from it serves the objectives of
research as biasness is not involved in it. Thus, attaining results with the help of questionnaire by incorporating sampling is
economical method which is being used by researcher for getting desired results with ease. It can be evaluated that researcher is
benefited by incorporating sampling method in collecting data from few population (Khairi and et.al., 2018). 30 managers have been
issued questionnaire which helps researcher to effectively ascertain relevant for the purpose of sampling quite effectively.
Data Collection-
Gathering of data is required so that desired data can be attained which serves as the purpose of research. Data collection is the
basic necessity in order to collect suitable and reliable sources with the help of which desired outcome can be achieved with ease. For
present research, scholar has used both primary and secondary sources of data (Lewis, 2015). Primary source is one whereby it is
collected for the first time and not being referred from any of the sources. Online questionnaire has been used which reflects primary
source as data is collected from sampling population (Razak and et.al., 2017). This is helpful for achieving desired amount of data in
the best way possible. This is provided with better approach so that data collection can be done in a better way. Primary data is one of
the important part of data collection as data is collected with response to interview, questionnaire or observations which are effective
part of data.
On the other hand, secondary data is useful for getting access to already collected data. This means that data has being
collected from previous researcher which can be used for present research so as to serve the purpose in effective manner. Secondary
data is effective source as time is saved of collecting entire data with scratch. Moreover, costs are not incurred as only access needs to
18

be taken from reliable sources from where data has been gathered. In relation to this, secondary data involves data from books,
journals, internet articles and other related secondary sources which helps in answering to research questions in a better way. Both
primary and secondary data have been used in present research for getting ideal results of research. Primary data from questionnaire
and secondary data from books, journals have been utilised (Vaioleti, 2016). Thus, data collection is done so as to analyse socio-
economic contribution of conventional banks in Malaysia. Thus, researcher has gathered data from both sources.
Data Analysis-
It is an important step in shaping the data in presentable format in order to present collected data in effective manner. Data
collection is crucial stage by which primary and secondary sources are used for serving need of research project in hand. Next step is
data analysis which means to analyse gathered data so that concrete results can be attained in a better way. This is required so that
outcome of research can be attained and research objectives may be met by resolving research questions quite effectually. It is a vital
step dealing with analysing data in the best way possible (Abd Aziz, 2018). It provides clarity as research objectives are met. Data
analysis has been incorporated so that data may be effectively analysed and resultant output may be achieved.
For analysing data, scholar has used thematic analysis which provides clarity regarding the better presentation of data and
extracting out results in the best possible manner (Dang and Pheng, 2015). Data analysis by taking into account thematic analysis
provides fruitful results and thus, researcher has generated effective results in a better way. Thematic analysis could have been utilised
by getting data from online questionnaire asked from respondents. On basis of questionnaire, various themes are made which help to
assess the data in a better way. It means that by incorporating thematic analysis, researcher has been able to enumerate data quite
effectively. Hence, data analysis is being implemented for generating results of research. Furthermore, for presenting data in lucrative
manner, charts have been prepared in order to highlight data in presentable manner. This means that charts provide better way for
gaining results of data in effective way.
Ethical considerations-
19

Ethics are part of research project so that it is not violated while collecting data and using it for further for interpreting results.
It can be analysed that various ethical considerations have been taken for presenting research outcome as per the ethics of research.
Research participants were not being harmed in any manner and due respect of them was taken by keeping up dignity in effective
manner. In simple words, dignity and respect of participants were at the earliest priority and as a result, ethics were being followed
quite effectually (Fletcher, 2017). In relation to this, prior consent was being taken from respondents before carrying out research in
the best way possible. In simple words, they were conveyed with message regarding the purpose of research and then, permission was
taken regarding their usage of raw data in presentable format and using it in better way.
Participants in the research were also being assured of respecting their private information and perfect confidentiality of
information were being kept. On the other hand, deception regarding the aim and objectives of research was taken into consideration
so that it may not violate the research in any ways (Smith, 2015). Ethical consideration regarding transparency and honesty of
collecting data were taken so that it may not have negative influence on overall attainment of research in hand in effective way.
Hence, research project has been done by taking into account all these ethical considerations and none of them are violated. The
ethical considerations are effectively being taken and with proper consent of participants, viewpoints of respondents were taken in the
best way possible (Clandinin, Cave and Berendonk, 2017). This means that researcher has effectively being used information by
taking full consent of sample population with ease.
Reliability and Validity-
Reliable sources are required to be used in order to provide proof that they can used in further research in effective manner.
Reliability in present research implies that to how much extent same answers can be arrived using the similar type of instruments more
than once. This shows that reliable results are gettable because of such information with ease. Reliability issues are effectively taken in
current research which means that same results will be obtained in the future while incorporating or applying same instruments
(McCusker and Gunaydin, 2015). This means that proper and same results will be attained in forthcoming projects. The sources being
20

used were reliable in getting outcome in effective manner. Hence, reliability of research has been achieved and same results will be
attained in the future by incorporating similar type of instruments.
On the other hand, validity means that whether scientific method or approach have been abided for generating present findings
of research. This is an important part of research listing out whether valid conclusions are obtained or not. In present research, valid
scientific methods of research have been applied (Jennings and et.al., 2018). Quantitative method is used along with research approach
so as to arrive at better and valid conclusion. It clearly shows that most suitable sampling technique such as simple random technique
has been used as population of managers of conventional banks in Malaysia is high enough. Thus, validity and reliability are being
followed and research aim and objectives are accomplished.
Research Limitations-
Research project has been made by incorporating needed research methods and approaches quite effectually ( Lushey and
Munro, 2015). However, since lack of time, certain things were being left out which may have an impact over the results of research
up to high extent. In relation to this, time flexibility was not there and due to this, thematic analysis has been used. While, if more time
was allotted then, SPSS package programming on current economic data would have been used leading to affect results of research.
This means that by applying SPSS on current economic elements, more concrete results could have been accomplished (Xu and et.al.,
2018).
On the other hand, sampling plays a crucial role in attaining results by incorporating small population from larger population.
This means that due to usage of sampling, some error might be incorporated which would have affect results of research in effective
manner. Moreover, there were time bound for complete the project within stipulated time (Unschuld, 2018). This has led to affect
results of research. In all, these were some research limitations which were being attained and might affect outcomes up to certain
extent. However, project was completed by taking into consideration all elements of research in a better way.
Tasks
1st
week
2nd
week
3rd
week
4th
week
5th
week 6th week
7th
week
8th
week 9th week
10th
week
11th
week
12th
week
13th
week
21

Planning for
research
Generating ideas
Preparing proposal
Setting aim and
objectives
developing research
structure
submitting proposal
drafting literature
review
developing
Research
methodology
analysing sampling
size
data collection
techniques
gathering data
analysing outcomes
drafting conclusion
making
recommendations
Final submission
22

CHAPTER 4 DATA COLLECTION AND FINDINGS
To analyse the preferences and individual behaviour as well as perception relevant with conventional banking, there will be
determination of various factors. Scholar have gathered various information regarding operational framework of both conventional
and Islamic banks in Malaysia. In approach to this there have been preparation of various questions which were asked to 30
professionals at conventional banks in JOHOR city Malaysia (Broady-Preston, 2018). These questions will be based on various
economic factors, interest rates which will highlight all operational gains and management of activities.
Questionnaire
Demographic questions:
Name: ____________
Name of bank: ____________
Department you are serving: _____________
What is your age?
A) 18-25 ()
B) 25-30 ()
C) 30-50 ()
D) Above 50 ()
Academic Detail
A) Matric ()
B) Graduate ()
C) Post graduate ()
D) Diploma ()
23

Years of work experience in Bank?
A) Less than a year ()
B) 1-5 year ()
C) 5-10 years ()
D) More than 10 years ()
Question 1: Does your bank have appropriate risk management practices and policies?
A) Strongly agree ()
B) Agree ()
C) Disagree ()
D) Strongly disagree ()
Question 2: Do you agree that Islamic bank do not implicate interest instead, they use profit/loss sharing such as partnership which
is better in western method of banking?
A) Strongly agree ()
B) Agree ()
C) Disagree ()
D) Strongly disagree ()
Question 3: Do you think Islamic bank are more favourable than conventional bank?
A) Strongly agree ()
B) Agree ()
C) Disagree ()
D) Strongly disagree ()
Question 4: What are the factors which encourages consumer to invest more in Islamic bank instead of Conventional bank?
24

A) It has good product diversification ()
B) Low investment risks ()
C) Satisfactory banking system and quality of services ()
D) Good stability ()
Question 5: Is it safe that your bank for making investment which will prevent from Gharar (higher risks)?
A) Yes ()
B) No ()
Question 6: Is there any transparency in transactional activities of your bank?
A) Yes ()
B) No ()
Question 7: Are you satisfied with the interest rates offered by Conventional banks?
A) Yes ()
B) No ()
Question 8: Do you agree that the socio-economic factors affects operational aspects of your bank?
A) Strongly agree ()
B) Agree ()
C) Disagree ()
D) Strongly disagree ()
Question 9: Do you believe that traditional banking approaches are subjected to be barriers in policies for loan and advances?
A) Strongly agree ()
B) Agree ()
C) Disagree ()
25

D) Strongly disagree ()
Question 10: Do you believe that buyers have more interest regarding loans and credit-based banking services?
A) Strongly agree ()
B) Agree ()
C) Disagree ()
D) Strongly disagree ()
RESULTS
By considering such questions, which were asked to the professionals of Conventional banks. There have been generation of
effective outcomes which were analysed as per implicating various tests (Khaliq and et.al., 2017). It includes analysis based on
Frequency test, descriptive analysis, T test, regression analysis as well as avaricious other tests that will reflect the outcomes for
testing the hypothesis.
Frequency analysis:
To analyse outcomes based on above listed questions asked to 30 managers in Conventional banks at JOHOR city Malaysia on
which there has been use of Frequency analysis technique. They have been asked regarding the operational practices performed by
their banks as well as various current issues faced by them. It has helped in analysing the loopholes in conventional banking systems
as compared with the Islamic banks. It will help such industries in implicating appropriate development tactics and managing the
operational practices which will lead the firm in attaining proper targets (Abdul Wahab and et.al., 2017). Along with this, the
operational desire of banking institution is to gather large number of consumers as well as retaining higher profits through charged
interest over services. Considering such aspects which will be adequate in planning various policies and drafting a valid conclusion to
that will help banking professionals in decision making.
26

Frequency Table
Does your bank have appropriate risk management practices and policies?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 11 36.7 36.7 36.7
2 8 26.7 26.7 63.3
3 6 20.0 20.0 83.3
4 5 16.7 16.7 100.0
Total 30 100.0 100.0
27

Interpretation: On the basis of above asked question on which it has been asked to professionals of conventional banks that
their bank is offering appropriate risk management statement in practices. Thus, in 30 managers majority of them are agree upon such
statement and they strongly agree that their banks are performing appropriate risk management operations. policies have been planed
by banks in terms of analysing the interest rates as well as improving the sales which are required to be governed properly. Therefore,
28

the risks management will be helpful in improving the financial stability in the banking operations. professionals will have proper
information regarding each transactional activity which will bound them in making necessary improvements.
Do you agree that Islamic bank do not implicate interest instead, they use profit/loss sharing such as partnership which is
better in western method of banking?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 13 43.3 43.3 43.3
2 8 26.7 26.7 70.0
3 5 16.7 16.7 86.7
4 4 13.3 13.3 100.0
Total 30 100.0 100.0
29

30

Interpretation: On the basis of above asked question in which it has been asked to the professionals regrading implication of
interest rates instead of profit sharing in Islamic banks will be better or not. Thus, in respect with the western banking approaches
there have been use of revenue generated by the banks through interest they received from borrowed funds. However, in relation with
the above derived outcomes which presents that, there are majority of managers strongly believes that interest revenue will be more
effective than the profits earned by the banks. Additionally, it can be understood as there will be rise in revenue as per level of
borrowings by consumers. Therefore, such amount of fund will be large and appropriate for the firm in attaining proper gains.
Do you think Islamic bank are more favourable than conventional bank?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 6 20.0 20.0 20.0
2 7 23.3 23.3 43.3
3 8 26.7 26.7 70.0
4 9 30.0 30.0 100.0
Total 30 100.0 100.0
31

Interpretation: On the basis of banking system and operational practices made Islamic as well as conventional banks have
been asked to the professionals regarding their preferences for the operations. Thus, as per analysing the operational scenarios in such
industries there have been huge variations which indicates the buyer’s confidence in having proper security to their investment.
Therefore, as per understanding the derived outcomes from such asked question which represents that there are majority of
32

professionals are against this statement as only 6 personnel strongly believe that Islamic banks are more favourable which 9 of them
deny with this statement. Therefore, it can be said that, conventional banking operations are more adequate and effective as compared
with the Islamic banking operations. It highlights the reason that, the impact of Conventional banking operations will be adequate in
context with retaining the desired amount of profits.
What are the factors which encourages consumer to invest more in Islamic bank instead of Conventional bank?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 5 16.7 16.7 16.7
2 8 26.7 26.7 43.3
3 10 33.3 33.3 76.7
4 7 23.3 23.3 100.0
Total 30 100.0 100.0
33

Interpretation: It has been asked to the professionals at conventional banking system that what encourages buyers for making
investment in the Islamic banks more than the conventional banks. The rise in the consumer preferences have analysed the operational
motives and gains of the professionals in terms of making adequate investment which will help them in retaining better returns.
34

However, in this approached there have been various reasons which were being highlighted and analysed. Thus, it represents that
Islamic banks are more capable in delivering satisfactory banking services. Moreover, as per considering the Islamic rules and
regulation which determined that, they do not implicate interest rates charged over the borrowed funds by consumers. Therefore, such
approaches are more satisfactory to buyers as they were not bound to make payment of interest on the loan taken by them. Thus, due
to such reasons there have been rise in consumer interest more towards Islamic banking that Conventional banking system.
Is it safe in your bank for making investment which will prevent from Gharar (higher risks)?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 18 60.0 60.0 60.0
2 12 40.0 40.0 100.0
Total 30 100.0 100.0
35

Interpretation: It can be analysed after ascertaining the above listed outcomes that, represents that security in banking
operations in related with investments. Thus, professionals were asked by researcher that, is it safe and secure to make investment in
the bank which prevents the investment from gharar. It is mainly because conventional banks have charged interest on the investment
money. Therefore, which will be safe and secure in terms of generating higher revenue as well as making proper returns to consumers.
36

However, in this case it can be said that, risk management in the banking industry needed to be more effective as it will help in
preventing the business operations and investments from risks.
Is there any transparency in transactional activities of your bank?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 20 66.7 66.7 66.7
2 10 33.3 33.3 100.0
Total 30 100.0 100.0
37

Interpretation: On the basis of financial disclosure and information presented by banks are needed to be valid and adequate
which will present proper analysis on research issues. Therefore, reliability of the present information on which bank’s financial detail
are relevant with each transactional practice has to be adequate proper that will help in managing operations. Therefore, on which
38

there have been transparency in presenting the transactional information regarding the banking operations. Thus, they believe that,
their banks are presenting authentic information among stakeholders. Thus, such transparent disclosure has helped in attaining proper
profitability and revenue in retaining adequate gains. On the basis of above listed outcomes there are maximum professionals which
are in favour of such statement that, their banks are presenting the transparent information based on each transactional activity.
Are you satisfied with the interest rates offered by Conventional banks?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 19 63.3 63.3 63.3
2 11 36.7 36.7 100.0
Total 30 100.0 100.0
39

Interpretation: It has been asked to the professionals regarding the interest rates offered by conventional banks. These rates
are the main source of generating income in the banking industry which will help in analysing the operational efforts of the firm.
Therefore, this question had been asked to the professionals with considering the financial stability in their banks. There have been
40

impacts of various operational practices which are needed to be ascertained for effective management that will help in managing
banking activities. However, there majority of professionals are satisfied the interest rates offered by conventional bank. Therefore,
there can be necessary increment and operational management which in turn will be useful in managing financial obstacles in banks.
Do you agree that the socio-economic factors affect operational aspects of your bank?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 11 36.7 36.7 36.7
2 9 30.0 30.0 66.7
3 6 20.0 20.0 86.7
4 4 13.3 13.3 100.0
Total 30 100.0 100.0
41

Interpretation: It has been asked to the professionals that socio economic factors affects the operational activities of banking
firm. Thus, in Islamic religious aspects where, alcohol, interest and gambling as been denoted as unlawful activities. Thus, such issues
impact on the operational functioning of the conventional banks. These factors negatively influence banking practices which in turn
42

have the inadequate practices. As per looking through the outcome which ascertains that there have been various impacts of social
factors on the business performance. Islamic banks are comparatively more preferred among society due to such reasons. A majority
of professionals believes that, social as well as economic factors have main influences on banking functions.
Do you believe that, traditional banking approaches are subjected to be barriers in policies for loan and advances?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 13 43.3 43.3 43.3
2 7 23.3 23.3 66.7
3 5 16.7 16.7 83.3
4 5 16.7 16.7 100.0
Total 30 100.0 100.0
43

Interpretation. On the basis of above asked question which ascertains the outcomes based on the impacts of traditional
aspects on the policy related to loans and advances. Thus, in Islamic tradition the interest charges on borrowed money has been
denoted as unlawful which impacts the policies governed by banks in terms of such aspects. The motive of banking professionals is
44

for bringing adequate services among buyers but due to such barriers they losses loyalty of consumers. As per analysing the above
listed outcomes on which majority of responses are in strong favour of this aspect.
Do you believe that buyers have more interest regarding loans and credit-based banking services?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 14 46.7 46.7 46.7
2 7 23.3 23.3 70.0
3 6 20.0 20.0 90.0
4 3 10.0 10.0 100.0
Total 30 100.0 100.0
45

Interpretation: On the basis of above asked question which represent that, buyers are mainly attracted towards bank for
retaining the credit services such as loans or borrowings. In respect with this approach there are majority of responses are in favour of
this statement which states that, there are large number of consumers are willing to take credit-based services from banks. Thus,
46

presenting the loans and advances on the interest rate consideration will be helpful and appropriate in managing higher funds for
operations.
Descriptive statistics:
Descriptive Statistics
N Range Minimu
m
Maximu
m
Sum Mean Std.
Deviation
Variance
Statistic Statistic Statistic Statistic Statistic Statistic Std.
Error
Statistic Statistic
Is your bank have
appropriate risk
management practices
and policies?
30 3 1 4 65 2.17 .204 1.117 1.247
Do you agree that,
Islamic bank do not
implicate interest instead
of it they use profit loss
sharing such as
partnership which is
better than western
method of banking?
30 3 1 4 60 2.00 .198 1.083 1.172
What do you think,
Islamic bank are more
favourable than
conventional bank?
30 3 1 4 80 2.67 .205 1.124 1.264
47

What do you think
regarding the consumer
preferences for Islamic
banks more than
conventional banking
system?
30 3 1 4 79 2.63 .189 1.033 1.068
Is it safe in your bank for
making investment which
will prevent from Gharar
(higher risks)?
30 1 1 2 42 1.40 .091 .498 .248
Is there transparency in
transactional activities of
your bank?
30 1 1 2 40 1.33 .088 .479 .230
Are you satisfied with
the interest rates offered
by Conventional banks?
30 1 1 2 41 1.37 .089 .490 .240
Do you agree that the
socio-economic factors
affects operational
aspects of your bank?
30 3 1 4 63 2.10 .194 1.062 1.128
Do you believe that,
traditional banking
approaches are subjected
to be barriers in policies
for loan and advances?
30 3 1 4 62 2.07 .209 1.143 1.306
48

Do you believe that
buyers have more interest
regarding loans and
credit-based banking
services?
30 3 1 4 58 1.93 .191 1.048 1.099
Valid N (listwise) 30
Hypothesis testing:
Null Hypothesis (H0): There is no mean significant relationship between consumer interest and risk management system in
conventional banks.
Alternative Hypothesis (HA): There is a mean significant relationship between consumer interest and risk management
system in conventional banks.
Regression: This is the technique which helps in analysing the relationship between two variables. There4fore, to analyse the
relationship between the risk management operations as well as consumer interest in banking services there has been ascertainment of
such findings.
Descriptive Statistics
Mean Std. Deviation N
Is your bank have appropriate risk management
practices and policies? 2.17 1.117 30
Do you believe that buyers have more interest
regarding loans and credit-based banking services? 1.93 1.048 30
49

Correlations
Is your bank have
appropriate risk
management practices
and policies?
Do you believe that
buyers have more interest
regarding loans and
credit-based banking
services?
Pearson Correlation
Is your bank have appropriate risk
management practices and policies? 1.000 -.344
Do you believe that buyers have more
interest regarding loans and credit-based
banking services?
-.344 1.000
Sig. (1-tailed)
Is your bank have appropriate risk
management practices and policies? . .031
Do you believe that buyers have more
interest regarding loans and credit-based
banking services?
.031 .
N
Is your bank have appropriate risk
management practices and policies? 30 30
Do you believe that buyers have more
interest regarding loans and credit-based
banking services?
30 30
Model Summary
Model R R Square Change Statistics
50

Adjusted R
Square
Std. Error of
the Estimate
R Square
Change
F Change df1 df2 Sig. F Change
1 .344a .118 .087 1.067 .118 3.750 1 28 .063
a. Predictors: (Constant), Do you believe that buyers have more interest regarding loans and credit-based banking services?
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 4.271 1 4.271 3.750 .063b
Residual 31.895 28 1.139
Total 36.167 29
a. Dependent Variable: Is your bank have appropriate risk management practices and policies?
b. Predictors: (Constant), Do you believe that buyers have more interest regarding loans and credit-based banking services?
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig. 95.0% Confidence Interval
for B
B Std. Error Beta Lower Bound Upper Bound
1
(Constant) 2.874 .414 6.939 .000 2.026 3.723
Do you believe that
buyers have more
interest regarding loans
and credit-based banking
services?
-.366 .189 -.344 -1.936 .063 -.753 .021
51

a. Dependent Variable: Is your bank have appropriate risk management practices and policies?
Interpretation: On the basis of above determined regression analysis on the variation, which insists the relationship between
variables. Thus, R square of the variables has been analysed as 0.087 which is 8.7% related. Therefore, there is 8.7% relationship has
been based made on the outcomes. Moreover, as per considering the P value of the outcomes which has been gathered as 0.063. As
per significance value of variables has been tested on the basis accepted p level such as 0.05. p value is more than 0.05 therefore, there
have been acceptance to the alternative hypothesis. It states that, there is a mean significance relationship between risk management
system in conventional banks and consumer interest in operations.
T-test analysis:
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Is your bank have appropriate risk
management practices and policies? 30 2.17 1.117 .204
Do you believe that buyers have more
interest regarding loans and credit-based
banking services?
30 1.93 1.048 .191
One-Sample Test
Test Value = 0
t df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the
Difference
Lower Upper
52

Is your bank have appropriate
risk management practices
and policies?
10.627 29 .000 2.167 1.75 2.58
Do you believe that buyers
have more interest regarding
loans and credit-based
banking services?
10.102 29 .000 1.933 1.54 2.32
Reliability Test:
Case Processing Summary
N %
Cases
Valid 30 100.0
Excludeda 0 .0
Total 30 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alphaa Cronbach's Alpha Based on Standardized
Itemsa
N of Items
-.180 -.148 10
a. The value is negative due to a negative average covariance among items. This violates reliability model assumptions. You may
want to check item codings.
53

Item Statistics
Mean Std. Deviation N
Is your bank have appropriate risk management
practices and policies? 2.17 1.117 30
Do you agree that, Islamic bank do not implicate
interest instead of it they use profit loss sharing such
as partnership which is better than western method of
banking?
2.00 1.083 30
What do you think, Islamic bank are more favourable
than conventional bank? 2.67 1.124 30
What do you think regarding the consumer
preferences for Islamic banks more than conventional
banking system?
2.63 1.033 30
Is it safe in your bank for making investment which
will prevent from Gharar (higher risks)? 1.40 .498 30
Is there transparency in transactional activities of your
bank? 1.33 .479 30
Are you satisfied with the interest rates offered by
Conventional banks? 1.37 .490 30
Do you agree that the socio-economic factors affects
operational aspects of your bank? 2.10 1.062 30
Do you believe that, traditional banking approaches
are subjected to be barriers in policies for loan and
advances?
2.07 1.143 30
Do you believe that buyers have more interest
regarding loans and credit-based banking services? 1.93 1.048 30
54

Inter-Item Correlation Matrix
Is your
bank have
appropriat
e risk
managem
ent
practices
and
policies?
Do you
agree
that,
Islamic
bank do
not
implicate
interest
instead of
it they use
profit loss
sharing
such as
partnershi
p which is
better
than
western
method of
banking?
What do
you think,
Islamic
bank are
more
favourabl
e than
conventio
nal bank?
What do
you think
regarding
the
consumer
preferenc
es for
Islamic
banks
more than
conventio
nal
banking
system?
Is it safe
in your
bank for
making
investmen
t which
will
prevent
from
Gharar
(higher
risks)?
Is there
transpare
ncy in
transactio
nal
activities
of your
bank?
Are you
satisfied
with the
interest
rates
offered
by
Conventi
onal
banks?
Do you
agree that
the socio-
economic
factors
affects
operation
al aspects
of your
bank?
Do you
believe
that,
traditional
banking
approache
s are
subjected
to be
barriers in
policies
for loan
and
advances?
Do you
believe
that
buyers
have more
interest
regarding
loans and
credit-
based
banking
services?
Is your bank
have appropriate
risk management
practices and
policies?
1.000 -.827 .073 .891 .124 -.301 .514 -.480 -.090 -.344
55

Do you agree
that, Islamic bank
do not implicate
interest instead of
it they use profit
loss sharing such
as partnership
which is better
than western
method of
banking?
-.827 1.000 -.113 -.832 -.064 .199 -.325 .570 .028 .516
What do you
think, Islamic
bank are more
favourable than
conventional
bank?
.073 -.113 1.000 -.049 .000 .213 .042 -.029 .045 -.049
What do you
think regarding
the consumer
preferences for
Islamic banks
more than
conventional
banking system?
.891 -.832 -.049 1.000 .094 -.232 .479 -.311 .021 -.310
56

Is it safe in your
bank for making
investment which
will prevent from
Gharar (higher
risks)?
.124 -.064 .000 .094 1.000 -.289 -.056 .117 -.170 -.277
Is there
transparency in
transactional
activities of your
bank?
-.301 .199 .213 -.232 -.289 1.000 -.098 .000 .273 .320
Are you satisfied
with the interest
rates offered by
Conventional
banks?
.514 -.325 .042 .479 -.056 -.098 1.000 -.073 -.415 -.018
Do you agree
that the socio-
economic factors
affects
operational
aspects of your
bank?
-.480 .570 -.029 -.311 .117 .000 -.073 1.000 -.063 .471
57

Do you believe
that, traditional
banking
approaches are
subjected to be
barriers in
policies for loan
and advances?
-.090 .028 .045 .021 -.170 .273 -.415 -.063 1.000 .234
Do you believe
that buyers have
more interest
regarding loans
and credit-based
banking services?
-.344 .516 -.049 -.310 -.277 .320 -.018 .471 .234 1.000
Inter-Item Covariance Matrix
58

Is your
bank have
appropriat
e risk
managem
ent
practices
and
policies?
Do you
agree
that,
Islamic
bank do
not
implicate
interest
instead of
it they use
profit loss
sharing
such as
partnershi
p which is
better
than
western
method of
banking?
What do
you think,
Islamic
bank are
more
favourabl
e than
conventio
nal bank?
What do
you think
regarding
the
consumer
preferenc
es for
Islamic
banks
more than
conventio
nal
banking
system?
Is it safe
in your
bank for
making
investmen
t which
will
prevent
from
Gharar
(higher
risks)?
Is there
transpare
ncy in
transactio
nal
activities
of your
bank?
Are you
satisfied
with the
interest
rates
offered
by
Conventi
onal
banks?
Do you
agree that
the socio-
economic
factors
affects
operation
al aspects
of your
bank?
Do you
believe
that,
traditional
banking
approache
s are
subjected
to be
barriers in
policies
for loan
and
advances?
Do you
believe
that
buyers
have more
interest
regarding
loans and
credit-
based
banking
services?
Is your bank
have appropriate
risk management
practices and
policies?
1.247 -1.000 .092 1.029 .069 -.161 .282 -.569 -.115 -.402
59

Do you agree
that, Islamic bank
do not implicate
interest instead of
it they use profit
loss sharing such
as partnership
which is better
than western
method of
banking?
-1.000 1.172 -.138 -.931 -.034 .103 -.172 .655 .034 .586
What do you
think, Islamic
bank are more
favourable than
conventional
bank?
.092 -.138 1.264 -.057 .000 .115 .023 -.034 .057 -.057
What do you
think regarding
the consumer
preferences for
Islamic banks
more than
conventional
banking system?
1.029 -.931 -.057 1.068 .048 -.115 .243 -.341 .025 -.336
60

Is it safe in your
bank for making
investment which
will prevent from
Gharar (higher
risks)?
.069 -.034 .000 .048 .248 -.069 -.014 .062 -.097 -.145
Is there
transparency in
transactional
activities of your
bank?
-.161 .103 .115 -.115 -.069 .230 -.023 .000 .149 .161
Are you satisfied
with the interest
rates offered by
Conventional
banks?
.282 -.172 .023 .243 -.014 -.023 .240 -.038 -.232 -.009
Do you agree
that the socio-
economic factors
affects
operational
aspects of your
bank?
-.569 .655 -.034 -.341 .062 .000 -.038 1.128 -.076 .524
61

Do you believe
that, traditional
banking
approaches are
subjected to be
barriers in
policies for loan
and advances?
-.115 .034 .057 .025 -.097 .149 -.232 -.076 1.306 .280
Do you believe
that buyers have
more interest
regarding loans
and credit-based
banking services?
-.402 .586 -.057 -.336 -.145 .161 -.009 .524 .280 1.099
Summary Item Statistics
Mean Minimum Maximum Range Maximum /
Minimum
Variance N of Items
Item Means 1.967 1.333 2.667 1.333 2.000 .232 10
Item Variances .900 .230 1.306 1.076 5.680 .213 10
Inter-Item Covariances -.014 -1.000 1.029 2.029 -1.029 .117 10
Inter-Item Correlations -.013 -.832 .891 1.724 -1.071 .113 10
Item-Total Statistics
62

Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's Alpha
if Item Deleted
Is your bank have appropriate
risk management practices and
policies?
17.50 8.052 -.245 .896 .041
Do you agree that, Islamic
bank do not implicate interest
instead of it they use profit loss
sharing such as partnership
which is better than western
method of banking?
17.67 8.368 -.286 .847 .072
What do you think, Islamic
bank are more favourable than
conventional bank?
17.00 6.483 .000 .288 -.218a
What do you think regarding
the consumer preferences for
Islamic banks more than
conventional banking system?
17.03 7.551 -.153 .910 -.057a
Is it safe in your bank for
making investment which will
prevent from Gharar (higher
risks)?
18.27 7.857 -.128 .240 -.128a
Is there transparency in
transactional activities of your
bank?
18.33 7.195 .125 .356 -.247a
Are you satisfied with the
interest rates offered by
Conventional banks?
18.30 7.390 .044 .537 -.209a
63

Do you agree that the socio-
economic factors affects
operational aspects of your
bank?
17.57 6.254 .069 .654 -.292a
Do you believe that, traditional
banking approaches are
subjected to be barriers in
policies for loan and advances?
17.60 6.386 .010 .450 -.231a
Do you believe that buyers
have more interest regarding
loans and credit-based banking
services?
17.73 5.444 .246 .541 -.508a
a. The value is negative due to a negative average covariance among items. This violates reliability model assumptions. You may
want to check item codings.
Scale Statistics
Mean Variance Std. Deviation N of Items
19.67 7.747 2.783 10
ANOVA
Sum of Squares df Mean Square F Sig
Between People 22.467 29 .775
Within People
Between Items 62.600 9 6.956 7.609 .000
Residual 238.600 261 .914
Total 301.200 270 1.116
64

Total 323.667 299 1.082
Grand Mean = 1.97
Hotelling's T-Squared Test
Hotelling's T-Squared F df1 df2 Sig
441.639 35.534 9 21 .000
Discussion:
In consideration with the above report which have presented the adequate outcomes based on operations performed by Islamic
and conventional banks. Therefore, the socio and economic factors have affected the banking operations in the market. It has
influences due to changing governmental policies as well as various social, traditional causes (Khaliq and Thaker, 2017). In Islam,
interest charged on loan and advances is denoted as the unlawful and inadequate terms which creates barriers in the operational
practices of conventional banks (Mohiuddin, Begum and Rizvi, 2018). The impacts of such issues have reflected improper analysis on
the data base. Therefore, in Malaysia there have been impacts of both banking system such as Islamic as well as conventional banking
system. in relation with the above listed analysis and determination of the operational practices which have presented that there is a
relationship between such variables which are to be managed and governed by professionals in conventional banks (Abduh, Omar and
Mesic, 2017). There are various operations which are being facilitated by conventional banks such as loans, credit cards, mortgage as
well as various short and long-term credit services.
As per analysing the requirements of financial disclosure by stakeholders of banking firm. Thus, on which there will be
development of various operational practices which is consist of managing the economic growth and bringing favourable development
(Razimi, Shahril and Romle, 2017). Moreover, in conventional banking system there can be fluctuations in the interest rates as per
changes in economic policies by Malaysian government. While considering the payment ratio and interest share form different
65

segments were counted fluctuating it is analysed that various challenges and parts were analysed in terms voiding the variable factors
and share price with 57.8% of total gross family takaful contribution Active role of operations subject to supporting government and
the introduction for home financing schemes get more exploratory and conservative (Jamaluddin and et.al., 2017). In addition, as per
analysing the above listed tests and various outcomes which represents hypothetical analysis on data base such as risk management in
the conventional bank affect the consumers interests towards retaining the operational benefits for the industry. Thus, in relation with
such approaches there have been increment in various policies and tasks which are required to be managed and analysed. After
analysing the results, there have been acceptance to the alternative hypothesis (Albashir, Zainuddin and Panigrahi, 2017). Thus, it
determines that there is mean significance relationship between the variables. Thus, the changes incurred in risk management policies
of the organisation which will affect consumer interest in banks. It is mainly due to consumers make investment in the bank and they
are desired of having appropriate interest in return (Marlindona, Pranaditya and Supriyanto, 2017). The security towards funds
invested in operations has to be considered more which can help in managing the operational practices and make adequate analysis on
issues.
Conventional banks have to increase the banking efficiencies, credit facilities as well as implicate appropriate strategies which
will benefit to consumers. There will be growth in the sales volume of banks as per improving risk management operations as well as
appropriate interest rates which will help them in making qualitative decisions (Saleh and et.al., 2017).
66

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
Hereby, it can be concluded that banks and financial institutions are considered to be main part of Malaysian economy which
garners good amount of contribution of GDP in the country. It is essentially required that growth of company or banks should be
enhanced in order to effectively meet desired objectives with ease. It can be analysed that in Malaysia, conventional banks are lower
as they follow Islamic Shariah which prohibits for conducting banking activities with interest. In simple words, Islamic law does not
allow taking interest or pay interest which is primarily held in conventional banks. This is because income from interest has been the
main source for increasing overall profitability of financial institutions and without that profits get reduced up to a major extent.
Banks act as an intermediary by allocating financial resources and gathering deposits from savers and then to offer loans to
consumers, businesses and governments in effective manner. In addition to this, conventional banks carry out activities in similar
manner and take deposits from savers and investors, paying interest on accounts which act as an investment in yielding returns in the
best way possible. On the contrary, lend these funds to borrowers and effectively receive interest on the same. Thus, it is the primary
working of conventional banks in Malaysia which is completely different from Islamic banks.
Muslim investors are now investing in conventional banks having a pool for financial and banking process. Islamic banking
system is in accordance to Islamic principles as taught in Quran and Shariah. According to principles, interest, gambling and alcohol
are strictly prohibited. Over the years, Islamic banking has gradually expanded to various countries. The total assets were about $65.6
billion with growth of a rate of 18-20 % in recent years and major source of income for Malaysian economy quite effectually. It can be
find out that conventional and Islamic banking both are present in Malaysia driving growth of economy. It can be concluded that
major part of banks' profit come from interest earned on loans, paying return on customer's deposits, volume of loans and volume of
deposits have considerably increased and influenced profits of banks up to a major extent.
Conventional banks have good part of profits for country and it can be said that socio-economic contribution is made by
conventional banks. In order to strengthen, banking structure should strengthen their risk management system in effective manner. It
can be analysed that if risk management system is effective enough, consumers interest in banking will maximise. This will be
67

profitable to company as it will be able to generate good amount of profits as investment will be made in higher quantum by
customers. Moreover, they will gain confidence in investing their savings into productive channel and gets assured of recovery of their
money in effective manner. Moreover, it can be recommended that firms in the conventional banking structure should improvise its
services and product portfolio so that maximum profits may be accomplished quite effectually.
Hereby, it can be summed from the report that Islamic and conventional banks have major influence over the company as it
provides socio-economic contribution to the economy of Malaysia. The customers are satisfied with the banking structure and it can
be identified from hypothesis formulated that alternative one is selected which means that there is significant relationship among the
consumer interest and risk management structure of conventional banks. Moreover, it can also be analysed that customer's confidence
in banking increases, when risk management system is enhanced in a better way.
It can be summarised that conventional banking structure of Malaysia is the highest economic generation in effective manner.
On the other hand, Islamic banks have achieved global success and has been developing not only in Muslim countries but also have
expanded to other countries in the best way possible. In relation to this, conventional banks and Islamic banks have generated good
growth. In order to expand to more countries, Islamic banks could be offer its capabilities, skills and related features in effective
manner. In relation to this, conventional banks have increased its growth in the best manner possible.
Conventional banks have major products and service portfolio such as Mortgage loans, housing loans, schedule payments,
interest payment and repayment are offered in effective manner. Moreover, it can be assessed that conventional banks should be
developed in the best way possible so that economic contribution to Malaysia can be enhanced in a better way. In relation to this,
revenues and profits of banks may be enhanced in effective manner. Hence, it can be outlined from report that conventional banks
may be improved in effective manner. Moreover, in order to enhance of profits of conventional banks, well-defined strategies needs to
be implemented so that socio-economic contribution to Malaysian economy may be achieved.
Recommendations
68

To improve upon services of banking structure and risk management system, government should also participate in the same
and regulate entire system in effective manner. Identification of weaknesses should be made so that strategies may be developed for
increasing consumer confidence and interest in company. If Malaysian government and financial regulators of country care for
transforming conventional banks into highly efficient and productive sector, then risk management structure or system should be
improvised for garnering higher growth in the best way possible. This will lead to follow financial system having different, unique and
practicable capabilities. In accordance to this, recommendations can be explained below-
 The risk management system can be effectively improved by developing internal risk management models. This is because
when financial institutions make decision to investment, number of financial risk attached with the same arises. Financial risks
have various forms which can impact banking such as recession, increase in inflation, volatility in capital markets etc. Thus, by
developing and designing internal model of risk management, conventional banks can increase customer's confidence.
 Credit risk is the risk involving borrower risk, portfolio risk and includes inability of counter party to meet its payment
obligations within stipulated time or defaulting on the same. For managing this kind of risk, conventional banks in Malaysia
should articulate risk management process. Moreover, through incorporating credit score, degree of risk can be measured up to
major extent. In relation to this, company should focus on risk pricing for estimating expected and unexpected financial losses
quite effectively. Credit risk management should be enhanced so as to curb the adverse effect of credit risk in effective manner.
 Market risk is another type of risk which involves fluctuations in interest rates, market variables, fluctuations in foreign
exchange market up to major extent. Particularly, a minute change can affect overall value of banks in economic terms. It is
recommended to conventional banks of Malaysia particularly in JOHOR city, review mechanisms, risk management policies,
auditing reporting system should be enhanced so that consumer interest in banks can be improved.
 Conventional banks should be implement or form Asset-Liability Management Committee which will have main task to
manage balance sheet in accordance to the performance or risk parameters. Independent middle office should be set-up for
69

tracking market risk on a real time basis. In this office, experts in fields such as economists, statisticians and bankers should be
hired who have thorough knowledge of market risk.
 On the other hand, another risk management structure should be followed of operational risk. It arises mainly due to modernise
banking sector and financial markets, complex support systems etc. For effectively managing this risk, some advanced
techniques need to be incorporated into the banks so that risk can be mitigated up to a high extent. In other words, probability
of operational loss and size of losses should be analysed and implemented in a better way.
 Conventional banks can prevent from occurrence of such risks by effectively using judgemental and analytical techniques for
measuring level of operational risk of banks. This will give consumer a sense of confidence as people will be able to assess the
risk management system of the banks and even if fluctuations occur in interest rate, then also they will not lose confidence in
banks and continue transacting with banks on a broader basis with ease.
 Bond credit rating could be implemented by company in order to assess risk in the best way possible. It is required because
operational risk can be categorised as audit ratings, data on quality and data turnover which are to be adopted so that company
may be able to analyse credit rating of banks in effective manner. On the other hand, it should be reviewed on regular intervals
and monitored so that customers may not lose confidence and continue doing transactions.
It can also be recommended that conventional banks should improve upon the security measures on online banking server in
effective manner. The security measures should be improved so that safer online transactions may be done by customers and as a
result, they will have better confidence over the banking system and transactions can be increased in a better way.
70

REFERENCES
Books and Journals:
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services delivery in Malaysia. Journal of Islamic Marketing, (just-accepted), pp.00-00.
Abduh, M., Omar, M. A. and Mesic, E., 2017. Profitability determinants of Islamic and conventional banks in Malaysia: a panel
regression approach. Terengganu International Finance and Economics Journal (TIFEJ). 3(1). pp.1-7.
Abdul Wahab, H. and et.al., 2017. Risk-taking behavior and capital adequacy in a mixed banking system: new evidence from
Malaysia using dynamic OLS and two-step dynamic system GMM estimators. Emerging Markets Finance and Trade. 53(1).
pp.180-198.
Albashir, W. A., Zainuddin, Y. and Panigrahi, S., 2017. Conceptual Framework on Usage of Islamic Banking amongst Banking
Customers in Libya. International Journal of Innovation and Business Strategy (IJIBS). 7(1). pp.10-17.
Ariff, M., 2017. Islamic Banking in Malaysia: The Changing Landscape. Institutions and Economies, pp.1-13.
Bilau, A. A., Witt, E. and Lill, I., 2018. Research methodology for the development of a framework for managing post-disaster
housing reconstruction. Procedia engineering. 212. pp.598-605.
Broady-Preston, J., 2018. Research methodology in library and information studies (LIS) 2018: Part Two. Library and Information
Research. 42(126). pp.1-4.
Clandinin, D. J., Cave, M. T. and Berendonk, C., 2017. Narrative inquiry: a relational research methodology for medical
education. Medical education. 51(1). pp.89-96.
Fletcher, A. J., 2017. Applying critical realism in qualitative research: methodology meets method. International Journal of Social
Research Methodology. 20(2). pp.181-194.
Fletcher, A. J., 2017. Applying critical realism in qualitative research: methodology meets method. International Journal of Social
Research Methodology. 20(2). pp.181-194.
Jamaluddin, A. S. and et.al., 2017. Bank Efficiency: Islamic and Conventional Banks in Malaysia. In The Name of Allah, The most
Beneficent, The most Merciful, p.53.
Jennings, H. and et.al., 2018. Best practice framework for Patient and Public Involvement (PPI) in collaborative data analysis of
qualitative mental health research: methodology development and refinement. BMC psychiatry. 18(1). p.213.
Khairi, K. F. and et.al., 2018. Credit Risk Management Practices: A Study on Islamic Banking vs. Conventional Banking in
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Khaliq, A. and et.al., 2017. Interest Rate Risk Management and Islamic Banking: Evidence from Malaysia. Journal of Islamic
Finance. 6(1). pp.016-030.
Khaliq, A. and Thaker, H. M. T., 2017. Dynamic Causal Relationship Between Islamic Banking And Economic Growth: Malaysian
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71

Ledford, J. R. and Gast, D. L., 2018. Single case research methodology: Applications in special education and behavioral sciences.
Routledge.
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GOVERNANCE DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY (Studies in Conventional Banking Company
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72

APPENDIX
Raw data:
Is your
bank have
appropriate
risk
managemen
t practices
and
policies?
Do you
agree that,
Islamic
bank do not
implicate
interest
instead of it
they use
profit loss
sharing
such as
partnership
which is
better than
western
method of
banking?
What do
you think,
Islamic
bank are
more
favourable
than
convention
al bank?
What do
you think
regarding
the
consumer
preferences
for Islamic
banks more
than
convention
al banking
system?
Is it safe in
your bank
for making
investment
which will
prevent
from
Gharar
(higher
risks)?
Is there
transparen
cy in
transaction
al activities
of your
bank?
Are you
satisfied
with the
interest
rates
offered by
Convention
al banks?
Do you
agree that
the socio-
economic
factors
affects
operational
aspects of
your bank?
Do you
believe
that,
traditional
banking
approaches
are
subjected to
be barriers
in policies
for loan
and
advances?
Do you
believe that
buyers have
more
interest
regarding
loans and
credit-
based
banking
services?
1 4 1 1 1 1 1 1 1 1
1 4 4 2 2 2 1 4 4 4
1 4 2 1 1 1 1 4 1 4
73

1 4 1 2 1 2 2 4 1 4
1 3 4 1 1 2 2 1 1 3
1 3 4 2 1 2 1 4 4 3
1 3 1 2 1 1 1 3 4 3
1 3 4 1 2 1 1 3 1 1
1 3 4 1 2 1 1 3 1 1
1 2 1 2 2 1 2 3 1 1
1 2 4 2 1 2 1 1 4 1
2 2 1 3 1 2 1 1 4 1
2 2 4 2 1 2 1 1 3 3
2 2 2 2 1 1 1 1 3 3
2 2 1 3 2 1 1 3 3 3
2 2 3 3 2 1 1 3 1 1
2 2 2 3 2 1 1 2 1 1
2 1 2 3 1 2 1 2 1 1
2 1 3 3 1 1 1 2 3 2
3 1 3 3 1 1 1 1 3 1
3 1 3 3 2 1 1 1 2 1
3 1 2 3 2 2 1 1 2 2
3 1 4 3 1 2 2 2 1 2
3 1 2 4 1 1 2 2 1 2
3 1 4 4 1 1 2 2 1 2
74

4 1 2 4 2 1 2 1 2 2
4 1 3 4 2 1 2 1 2 1
4 1 3 4 1 1 2 2 2 1
4 1 3 4 1 1 2 2 2 2
4 1 3 4 2 1 2 2 2 1
Frequency Analysis:
Statistics
75

Is your
bank have
appropriat
e risk
manageme
nt
practices
and
policies?
Do you
agree
that,
Islamic
bank do
not
implicate
interest
instead
of it they
use profit
loss
sharing
such as
partnersh
ip which
is better
than
western
method
of
banking?
What do
you think,
Islamic
bank are
more
favourable
than
conventio
nal bank?
What do
you think
regarding
the
consumer
preference
s for
Islamic
banks
more than
conventio
nal
banking
system?
Is it safe
in your
bank for
making
investme
nt which
will
prevent
from
Gharar
(higher
risks)?
Is there
transparen
cy in
transaction
al
activities
of your
bank?
Are you
satisfied
with the
interest
rates
offered by
Conventio
nal banks?
Do you
agree
that the
socio-
economic
factors
affects
operation
al aspects
of your
bank?
Do you
believe
that,
traditiona
l banking
approach
es are
subjected
to be
barriers
in
policies
for loan
and
advances
?
Do you
believe
that
buyers
have
more
interest
regarding
loans and
credit-
based
banking
services?
N
Valid 30 30 30 30 30 30 30 30 30 30
Missi
ng 0 0 0 0 0 0 0 0 0 0
Mean 2.17 2.00 2.67 2.63 1.40 1.33 1.37 2.10 2.07 1.93
Std. Error of
Mean .204 .198 .205 .189 .091 .088 .089 .194 .209 .191
Median 2.00 2.00 3.00 3.00 1.00 1.00 1.00 2.00 2.00 2.00
76