Liberalisasi Kewangan dan Kecekapan Kos Perbankan Islam dan Konvensional: Pendekatan Analisis Sempadan Stokastik

Translated title of the contribution: Financial liberalization and cost efficiency in islamic and conventional banking: A stochastic frontier approach

Abu Dzarr Muhammad Rus, Mariani Abd Majid, Abu Hassan Shaari Md Nor

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This paper analyses the efficiency of Malaysian commercial banks during financial liberalisation using Stochastic Frontier Analysis. Focus of this paper is the efficiency of Islamic foreign banks and conventional banks with Islamic bank subsidiary. The results show that domestic conventional banks which operate Islamic banking have cost-saving technology compared to other banks. While, the relatively new foreign Islamic banks need more time to compete as they are found to be inefficient, conventional banks with Islamic bank subsidiary do not show any improvement in their efficiencies during the sample period. Therefore, by attracting foreign Islamic banks as well as converting Islamic banking windows into Islamic bank subsidiaries, government's objective of improving Malaysian banks efficiency particularly domestic banks during the sample period is yet to be achieved.

Original languageUndefined/Unknown
Pages (from-to)89-100
Number of pages12
JournalJurnal Ekonomi Malaysia
Volume45
Issue number1
Publication statusPublished - 2011

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Islamic financial institutions
Stochastic frontier approach
Financial liberalization
Banking
Subsidiaries
Islamic banking
Cost savings
Bank efficiency
Stochastic frontier analysis
Foreign banks
Government
Commercial banks

Keywords

  • Banking
  • Efficiency
  • Liberalisation
  • Stochastic frontier analysis

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)

Cite this

Liberalisasi Kewangan dan Kecekapan Kos Perbankan Islam dan Konvensional : Pendekatan Analisis Sempadan Stokastik. / Muhammad Rus, Abu Dzarr; Abd Majid, Mariani; Md Nor, Abu Hassan Shaari.

In: Jurnal Ekonomi Malaysia, Vol. 45, No. 1, 2011, p. 89-100.

Research output: Contribution to journalArticle

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AB - This paper analyses the efficiency of Malaysian commercial banks during financial liberalisation using Stochastic Frontier Analysis. Focus of this paper is the efficiency of Islamic foreign banks and conventional banks with Islamic bank subsidiary. The results show that domestic conventional banks which operate Islamic banking have cost-saving technology compared to other banks. While, the relatively new foreign Islamic banks need more time to compete as they are found to be inefficient, conventional banks with Islamic bank subsidiary do not show any improvement in their efficiencies during the sample period. Therefore, by attracting foreign Islamic banks as well as converting Islamic banking windows into Islamic bank subsidiaries, government's objective of improving Malaysian banks efficiency particularly domestic banks during the sample period is yet to be achieved.

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