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The efficiency of Malaysian Islamic banks: Intermediation, production and operating approach

Chowdhury, Mohammad Abdul Matin and Haron, Razali (2022) The efficiency of Malaysian Islamic banks: Intermediation, production and operating approach. Asian Management and Business Review, 2 (1). pp. 63-73. E-ISSN 2775-202X (In Press)

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The Malaysian Islamic banking industry holds one of the top three market shares for global Islamic banking assets. Apparently, a dual banking system involving conventional and full-fledged Islamic banks are currently operating in Malaysia. The main objective of this study is to evaluate and compare the efficiency of conventional-owned Islamic banks and full-fledged Islamic banks using three banking approaches. To achieve this objective, information from the annual reports of 15 Islamic banks were utilised from 2011 to 2018. The findings provided mixed evidence subject to the different approaches of DEA methodology. Full-fledged Islamic banks outperformed conventionalowned Islamic banks in the intermediation approach, while conventional-owned Islamic banks outperformed in the production and operating approaches. The findings provide inputs for banks to increase their competency at the managerial level and for policymakers to sustain the growth momentum of the industry.

Item Type: Article (Journal)
Uncontrolled Keywords: Banking efficiency, Islamic banking efficiency, Malaysian Islamic banks, banking approaches, DEA
Subjects: H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr. Razali Haron
Date Deposited: 06 Mar 2022 10:37
Last Modified: 06 Mar 2022 10:37
URI: http://irep.iium.edu.my/id/eprint/97069

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