Measuring the malaysian islamic subsidiaries and commercial banks’ efficiency
This study measures and ranks the relative efficiency of the domestic Islamic subsidiaries and commercial banks in Malaysia from the year 2008 to 2010. Nine domestic commercial banks and nine Islamic subsidiaries are selected. The study uses the Data Envelopment Analysis as the method to measure...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/25155/ http://irep.iium.edu.my/25155/ http://irep.iium.edu.my/25155/1/measuring.pdf http://irep.iium.edu.my/25155/4/ICEBI_2012Program.pdf |
| Summary: | This study measures and ranks the relative efficiency of the domestic Islamic subsidiaries and
commercial banks in Malaysia from the year 2008 to 2010. Nine domestic commercial banks and nine
Islamic subsidiaries are selected. The study uses the Data Envelopment Analysis as the method to measure
the relative efficiency of the selected banks in intermediating personnel expense and total customer deposits
(i.e. inputs) into total loan (i.e. output). The study focuses on the technical efficiency, pure technical
efficiency and scale efficiency. This study found that the technical inefficiency of the selected banks in 2008
was due to the pure technical inefficiency. This indicated that the scale efficiency was higher than the pure
technical efficiency. However, in 2009 and 2010, the pure technical efficiency was higher compared to the
scale efficiency. Hence, the technical inefficiency was due to the scale inefficiency |
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