The efficiency of Malaysian Islamic banks: Intermediation, production and operating approach

Autor: Mohammad Abdul Matin Chowdhury, Razali Haron
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: Asian Management and Business Review, Vol 2, Iss 1 (2022)
Druh dokumentu: article
ISSN: 2775-202X
DOI: 10.20885/AMBR.vol2.iss1.art6
Popis: 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 conventional-owned 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.
Databáze: Directory of Open Access Journals