COMPARING THE EFFICIENCY OF ISLAMIC BANK IN INDONESIA AND MALAYSIA

Fatin Fadhilah Hasib, Nisful Laila and Puji Sucia Sukmaningrum
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Fatin Fadhilah Hasib: Faculty of Economics and Business, Universitas Airlangga, Surabaya
Nisful Laila: Faculty of Economics and Business, Universitas Airlangga, Surabaya
Puji Sucia Sukmaningrum: Faculty of Economics and Business, Universitas Airlangga, Surabaya

Revista Economica, 2018, vol. 70, issue 4, 46-67

Abstract: This study measures and compared the efficiency of Islamic banks in Malaysia and Indonesia. This study used a quantitative non-parametic approach by using Data Envelopment Analysis (DEA) VRS assumption, CRS assumption and a statistic tool of Mann-Whitney-U-Test. The samples are 6 Islamic banks in Malaysia and 10 Islamic banks in Indonesia that comply with the specified sample criteria during 2010-2016. The results of this research show that Islamic banks in Indonesia are relatively higher than Islamic banks in Malaysia. The source of inefficiency in Islamic banks in Indonesia is more due to the inefficiency on a scale. While the hypothesis test shows that there are no significant differences of efficiency between Islamic banks in Indonesia and Malaysia.

Keywords: Islamic Bank; Performance; Efficiency; Data Envelopment Analysis (DEA) (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2018
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