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Productivity comparation of Islamic and conventional banks in Indonesia

Che Mohd Salleh, Marhanum and Rani, Lina Nugraha (2020) Productivity comparation of Islamic and conventional banks in Indonesia. Al-Uqud: Journal of Islamic Economics, 4 (1). pp. 69-82. ISSN 2549-0850 E-ISSN 2548-3544

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Abstract

This study aimed to compare the productivity performance of Islamic and Conventional Banks in Indonesia with the Total Factor Productivity Index (TFPCH) indicator. The sample of this study was 14 banks consisting of 7 Islamic Banks and 7 Conventional Banks from 2011-2018. Secondary data were obtained from the annual financial statements of each sample. To measure the total factor productivity index (TFPCH), the Malmquist Productivity Index (MPI) was used as a measure of productivity. It found that the productivity of Conventional Banks was slightly superior compared to Islamic Banks, with contributions from Technical / Technological Change (TECHCH) being the most influential component in the TFPCH composition. Further, there was an indication of a technical increase in both types of banks during the period. The results of this study implied banking industry players to increase their efficiency particularly the usage of technology in providing efficient services to users.

Item Type: Article (Journal)
Additional Information: 7080/78317
Uncontrolled Keywords: Performance; Total factor productivity index; Malmquist productivity index; Islamic banks and conventional banks.
Subjects: H Social Sciences > HG Finance > HG1501 Banking
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Finance
Kulliyyah of Economics and Management Sciences
Depositing User: Dr. Marhanum Che Mohd Salleh
Date Deposited: 19 Feb 2020 11:35
Last Modified: 19 Feb 2020 11:35
URI: http://irep.iium.edu.my/id/eprint/78317

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