Paper Title
The Impact of Global Financial Crisis on the Stability of Islamic Banks in Malaysia

Islamic banking and finance is one of the fastest growing segments in the global banking industry with its own characteristics. The implementation of the dual banking system in Malaysia started with the establishment of Bank Islam Malaysia Berhad in 1983. As in 2013, the Islamic banking sector in Malaysia registered a significant achievement in terms of assets, representing 13% of the total global Islamic banking assets, behind only Iran and Saudi Arabia. The strength of the banking system can be analysed based on the liquidity risk. Liquidity risk is not just a topic of interest in Islamic banking, but it is an issue for all banks, including conventional bank and regulatory bodies involved. This study aims to analysethe effects of the global financial crisis on liquidity in Islamic banking system in Malaysia. To analyse the impact of the financial crisis with the Islamic banking liquidity, time series data from 2007 to 2015 were used. For the analysis, liquidity ratio is determined. Secondly, One Way Analysis of Variance (ANOVA) is utilized to test the hypotheses using SPSS. These findings may have an impact on the Islamic banking system to remain competitive in the uncertainties of the current economic circumstances. Consequently, the banking system will create more employment opportunities for graduates, especially in the field of Islamic banking. Keywords- Financial cricis; Islamic Banking; Banking liquidity