Efficiency performance of Malaysian Islamic banks

Rossazana Ab-Rahim, Norlina Kadri and Farhana Ismail

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the efficiency performance of the full-fledged Islamic banks in Malaysia for the period of 2006 to 2011. The Malaysian Islamic banking industry has grown tremendously in terms of assets, deposits and total financing over the study period. Data Envelopment Analysis is employed in this study to measure the cost efficiency as well as the technical efficiency and its decompositions. The results show that, on average the main contributor of cost efficiency for Islamic domestic and foreign banks in Malaysia is allocative efficiency. In addition, the results find that Islamic foreign banks are more efficient than domestic banks with respect to pure technical efficiency and allocative efficiency.

Keywords: Efficiency; Islamic banks; Malaysia (search for similar items in EconPapers)
JEL-codes: D21 G21 (search for similar items in EconPapers)
Date: 2013-04-16
New Economics Papers: this item is included in nep-cse, nep-eff and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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