Determinants of bank technical efficiency : domestic Islamic and foreign Islamic bank in Malaysia

The main objective of this study is to identify the determinants affecting the Islamic banks’ technical efficiency (foreign Islamic bank and domestic Islamic bank) in Malaysia for the year of 2008 to 2012. This study is focuses on 16 Islamic banks in Malaysia which are Affin Islamic Bank Berhad, All...

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Bibliographic Details
Main Author: Tan, Jia Ming
Format: Final Year Project Report
Language:English
English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2015
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Online Access:http://ir.unimas.my/id/eprint/12324/1/Jia%20Ming%20%2824pgs%29.pdf
http://ir.unimas.my/id/eprint/12324/4/Tan%20Jia%20Ming.pdf
http://ir.unimas.my/id/eprint/12324/
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Summary:The main objective of this study is to identify the determinants affecting the Islamic banks’ technical efficiency (foreign Islamic bank and domestic Islamic bank) in Malaysia for the year of 2008 to 2012. This study is focuses on 16 Islamic banks in Malaysia which are Affin Islamic Bank Berhad, Alliance Islamic Bank Berhad, AmIslamic Bank Berhad, Bank Islam Malaysia Berhad, Bank Muamalat Malaysia Berhad, CIMB Islamic Bank Berhad, Hong Leong Islamic Bank Berhad, Maybank Islamic Berhad, Public Islamic Bank Berhad, RHB Islamic Bank Berhad, Al Rajhi Banking & Investment Corporation (Malaysia) Berhad, Asian Finance Bank Berhad, HSBC Amanah Malaysia Berhad, Kuwait Finance House (Malaysia) Berhad, OCBC Al-Amin Bank Berhad and Standard Chartered Saadiq Berhad. This study used secondary panel data and each of the bank data is take from annual report. The dependent variable in this study is technical efficiency (EFF). While the independent variables are bank size (BKS), bank expenses (EXP), bank equity (CAP) and bank loan (LOA). The overall results of this study shows that CAP have negative relationship with EFF and LOA have positive relationship with EFF. However, BKS and EXP shows that there is no relationship with technical efficiency in this study.