The efficiency of Malaysian Islamic banks: Intermediation, production and operating approach
The Malaysian Islamic banking industry holds one of the top three market shares for global Islamic banking assets. Apparently, a dual banking system involving conventional and full-fledged Islamic banks are currently operating in Malaysia. The main objective of this study is to evaluate and comp...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Master of Management, Faculty of Business and Economics, Universitas Islam Indonesia
2022
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/97069/1/22132-63922-1-PB.pdf http://irep.iium.edu.my/97069/ https://journal.uii.ac.id/AMBR/article/view/22132/12269 |
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| Summary: | The Malaysian Islamic banking industry holds one of the top three
market shares for global Islamic banking assets. Apparently, a dual
banking system involving conventional and full-fledged Islamic banks
are currently operating in Malaysia. The main objective of this study is
to evaluate and compare the efficiency of conventional-owned Islamic
banks and full-fledged Islamic banks using three banking approaches.
To achieve this objective, information from the annual reports of 15
Islamic banks were utilised from 2011 to 2018. The findings provided
mixed evidence subject to the different approaches of DEA
methodology. Full-fledged Islamic banks outperformed conventionalowned Islamic banks in the intermediation approach, while
conventional-owned Islamic banks outperformed in the production
and operating approaches. The findings provide inputs for banks to
increase their competency at the managerial level and for policymakers
to sustain the growth momentum of the industry. |
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