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Abstract

This study will analyze the profitability of the local and foreign banks in Malaysia by the internal and macroeconomic perspective using the Pooled OLS Method, Fixed Effect Method and Random Effect Method. The study found out that only 8 variables are significant for the local banks and 6 variables are significant for the foreign banks. The panel data has been used during 2007 until 2016. Inflation Rate and Real Interest are negatively influence the movement of the bank's profitability.