Assessing the domestic and foreign Islamic banks efficiency: Insights from selected Southeast Asian countries

Future Business Journal

Foong Wei Loong¹  Fakarudin Kamarudin¹  Nazratul Aina Mohamad Anwar²  Fadzlan Sufian³ 

[1] Faculty of Economics and Management, Universiti Putra Malaysia, 43400 Serdang, Selangor Darul Ehsan, Malaysia;Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, Nilai 71800, Negeri Sembilan, Malaysia;Universiti Islam Malaysia, Blok I, Bangunan MKN Embassy Techzone, Jalan Teknokrat 2, 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia;

关键词: Islamic banks;    Efficiency;    Data envelopment analysis;    Malaysia;    Indonesia;    Brunei;   

DOI  :  10.1016/j.fbj.2017.01.005

来源: DOAJ

【 摘 要 】

The objective of this study is to examine the technical efficiency (TE) and the decomposition of pure technical efficiency (PTE) and scale efficiency (SE) of domestic and foreign Islamic banks from the selected Southeast Asian Countries. The sample comprised of 29 domestic and foreign Islamic banks from Malaysia, Indonesia and Brunei over the period of 2006–2014. This study employ the Data Envelopment Analysis (DEA) method to measure banks’ efficiency. In addition, the parametric (t-test) and non-parametric (Mann-Whitney [Wilcoxon] and Kruskall-Wallis) tests also performed to examine the difference in the efficiency of the foreign and domestic Islamic banks. The results indicate that the domestic Islamic banks have exhibited higher efficiency levels compared to their foreign bank peers. In addition, the empirical findings from this study seem to suggest that the domestic Islamic banks have exhibited a higher efficiency levels for all three efficiency measures and consistent with home field advantage theory. The findings of this study are expected to contribute significantly to the regulators or policymakers, Islamic banking itself, investors and existing knowledge on the operating performance of the Islamic banking sector.

【 授权许可】

Unknown