Performance Measurement of Islamic and Conventional Banking in Malaysia Using Two-stage Analysis of DEA Model
Noor Asiah Ramli,
Siti Shaliza Mohd Khairi and
Nor Azizah Razlan
International Journal of Academic Research in Business and Social Sciences, 2018, vol. 8, issue 4, 1185-1197
Efficiency and effectiveness are two factors that have been considered in measuring the overall performance of any institution. The objective of this study is to measure the technical efficiency scores as well as the effectiveness of the Malaysian banking sector, and thus, determine their overall performance. The study analyzes the performance of the Malaysian banking sector, which comprises two types of bank, namely commercial banks and Islamic banks. The study covers the period of 2011 to 2015. A two-stage analysis of Data Envelopment Analysis (DEA) has been used in this study. The results of the analysis show that the average efficiency scores are greater than the average effectiveness scores for both types of bank for the years 2011 until 2015, while conventional banks perform better than Islamic banks. An efficient bank does not always equate to it being more effective. Together, these two factors reflect the overall performance of a bank. An analysis on the correlation between efficiency, effectiveness, and overall performance scores indicates that a positive and strong correlation exists between effectiveness and performance, whereas there is a negative correlation between efficiency and effectiveness scores.
Keywords: Performance measure; efficiency; effectiveness; Islamic banks; Conventional banks (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://hrmars.com/hrmars_papers/Performance_Measur ... sis_of_DEA_Model.pdf (application/pdf)
http://hrmars.com/hrmars_papers/Performance_Measur ... sis_of_DEA_Model.pdf (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hur:ijarbs:v:8:y:2018:i:4:p:1185-1197
Access Statistics for this article
More articles in International Journal of Academic Research in Business and Social Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().