The Implementation of Islamic Banking System in Malaysia since 1983 are now entering the phase of liberalization. This research is to measure and identify the extent to which changes in the rate of inflation, risk management and economic cycles affect the performance of Malaysian Islamic banking system in Malaysia during the period of 14 years from 1994 to 2008. To meet the objectives of the study, analysis of panel data estimation (panel data regression) was performed to assess the extent to which the relationship and influence of each factor on the performance of Islamic Banking System in Malaysia.

Human capital is important sources of input in order to move the economy in a country. Without Human capital intensive, productive and quality, a country can't use the economic resources to produce maximum output. Islamic countries are very popular with many natural resources. However these resources not fully use due to a number of shortcomings that exist, particularly involving the Human capital. In accordance with the above issues and problems. The objective of this study is to examine the Human capital development through education in Muslim countries in Asia could drive economic growth. The results showed the development of human capital through indicators of participation rates of students at primary, secondary, university and government spending on education is a factor affecting the leve1 of Gross Domestic Product (GDP) of Islamic countries in Asia.

Kemampuan membuat formulasi modal secara berkesan amat penting bagi kestabilan perbankan. Ketika melaksanakan tanggungjawab ini, bank terdedah kepada risiko kitaran ekonomi, perubahan dasar dan polisi luaran yang memberi kesan kepada struktur modal bank. Tujuan kajian ini adalah untuk mengkaji kesan kitaran ekonomi terhadap formulasi modal perbankan Malaysia dalam memastikan kestabilan sistem kewangan. Bagi mencapai objektif yang ditetapkan, kajian ini mengadaptasi kaedah penganggaran data panel tidak berimbang (unbalanced panel data) bagi 35 bank perdagangan di Malaysia meliputi tempoh 1994 hingga 2008. Dalam tempoh tersebut, kelakuan keseluruhan kitaran ekonomi Malaysia diambil kira, iaitu fakta penting yang mengarah kepada matlamat utama kajian iaitu untuk menganalisis sama ada wujud hubungan antara keperluan modal bank merentasi kitaran ekonomi. Hasil kajian mendapati wujud hubungan songsang antara nisbah modal dan kitaran ekonomi di mana bank kurang membina modal semasa ekonomi mengalami pengembangan.