ENHANCING PERFORMANCE EVALUATION AND MANAGEMENT PRACTICES IN MALAYSIAN ISLAMIC BANKING: A COMPREHENSIVE STUDY

Abstract

This study investigates the performance strategies and measurement approaches employed by Malaysian Islamic banks, which play a pivotal role in the nation's financial system. The research analyses the impact of Shari'ah compliance regulations, corporate governance practices, customer satisfaction levels, technological adoption rates, and risk management decisions on financial performance, operational efficiency, and market competitiveness. The study incorporates data from 50 financial reports and survey responses from 480 industry experts to gain insights into the Malaysian banking sector. Regression and correlation analyses were conducted to examine the relationships among the research variables. Findings indicate that banks achieve superior performance and operational efficiency when they adhere to Shari'ah principles, implement robust governance systems, and adopt digital technologies. Furthermore, effective risk management and high levels of customer satisfaction contribute to enhanced competitiveness and industry stability. The study provides practical recommendations for banking regulators and industry professionals to develop performance frameworks that foster the growth of Islamic banking while adhering to its ethical and financial principles.