Darjah Persaingan dalam Industri Dwi Perbankan di Malaysia

Translated title of the contribution: The degree of competition in the Malaysian dual banking industry

Research output: Contribution to journalArticle

Abstract

The purpose of this study is to evaluate the degree of competition in the Malaysian dual banking industry to address the question of whether Islamic banks are able to cope with competition from the well-established conventional banks. The Panzar-Rosse (PR) method has been used to measure the degree of competition in Islamic compared with conventional banking market over the period of 1997-2016. Present study uses static panel data estimation to estimate the developed models. Results from the H-statistics values using total income show that level of competition in the Islamic banking market is more intense than conventional banking market. Hence, providing evidence that Islamic banks are able to compete with conventional banks that have long history of establishment. The H-statistic values using total interest income also indicate the same result, hence supporting the robustness of these results. The findings also show the effectiveness of policy changes adopted by Bank Negara Malaysia in order to increase level of competition in both banking markets. Hence, knowledge on this issue is important to the policy makers for them to formulate new policy regarding banking competition.

Original languageMalay
Pages (from-to)77-96
Number of pages20
JournalJurnal Ekonomi Malaysia
Volume52
Issue number3
DOIs
Publication statusPublished - 1 Jan 2018

Fingerprint

Degree of competition
Banking industry
Banking
Income
Islamic financial institutions
Statistics
Robustness
Banking competition
Islamic banking
Politicians
Policy change
Panel data estimation
Malaysia

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Darjah Persaingan dalam Industri Dwi Perbankan di Malaysia. / Mohammed, Nafisah; Muhammad, Junaina; Ismail, Abd. Ghafar.

In: Jurnal Ekonomi Malaysia, Vol. 52, No. 3, 01.01.2018, p. 77-96.

Research output: Contribution to journalArticle

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