Determinants of revenue efficiency in the Malaysian Islamic banking sector

Sufian, Fadzlan and Kamarudin, Fakarudin and Mohd Noor, Nor Halida Haziaton (2012) Determinants of revenue efficiency in the Malaysian Islamic banking sector. Journal of King Abdulaziz University Islamic Economics, 25 (2). pp. 195-224. ISSN 7383-1018

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Abstract

This paper provides new empirical evidence on the revenue efficiency in the Malaysian Islamic banking sector during the period 2006 to 2010. We also examine the internal and external factors influencing the revenue efficiency of the Islamic banks. The sample comprised of 17 domestic and foreign Islamic banks. We employ the Data Envelopment Analysis (DEA) method to compute the revenue efficiency levels. The results indicate that the domestic Islamic banks have exhibited lower revenue efficiency levels compared to their foreign bank peers. We find that capitalization, market power, and liquidity have positive and significant relationships with Malaysian Islamic banks’ revenue efficiency. The results indicate that the impacts are not uniform across Islamic banks of different ownership forms.

Item Type:	Article (Journal)
Additional Information:	6678/27047
Uncontrolled Keywords:	Islamic banks, revenue efficiency, data envelopment analysis, panel regression analysis, Malaysia
Subjects:	H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Fadzlan Sufian
Date Deposited:	23 Nov 2012 12:15
Last Modified:	23 Nov 2012 12:15
URI:	http://irep.iium.edu.my/id/eprint/27047

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