Assessing the Revenue Efficiency of Domestic and Foreign Islamic Banks: Empirical Evidence from Malaysia
Penaksiran Kecekapan Hasil Bank Islam Domestik dan Asing: Bukti Empirikal dari Malaysia

Institute of Islamic Banking and Finance
International Islamic University Malaysia
205a Jalan Damansara, Damansara Heights
50480, Kuala Lumpur, Malaysia

fadzlans@iium.edu.my; fadzlan.sufian@gmail.com

Department of Economics
Faculty of Economics and Management
Universiti Putra Malaysia
43400, Serdang, Selangor, Malaysia

fakarudinkamarudin@gmail.com

Faculty of Business Management
UniversitiTeknologi MARA (UiTM Kelantan)
City Campus, 15050, Kota Bharu, Kelantan, Malaysia

halley2302@yahoo.com

Abstract

The present paper provides new empirical evidence regarding revenue efficiency in the Malaysian Islamic banking sector during the period from 2006 to 2010. The sample is comprised of 17 domestic and foreign Islamic banks. The Data Envelopment Analysis (DEA) method is employed to compute the revenue efficiency levels. The results indicate that the domestic Islamic banks exhibit lower revenue efficiency levels compared to foreign counterparts. In addition, the empirical findings suggest that the foreign Islamic banks exhibit higher efficiency levels for all three efficiency measures and are consistent with the global advantage theory. In essence, revenue efficiency seems to play the main role in lower or higher profit efficiency levels. The findings of the present study are expected to be relevant to regulators and policymakers, the Islamic banking industry and investors; and contribute significantly to existing knowledge on the operating performance of the Malaysian Islamic banking sector

Keywords

data envelopment analysis; Islamic banks; Malaysia; revenue efficiency

Citation

Sufian, F. S., Kamarudin, F. K., & Mohd Noor, N. H. (2013). Assessing the Revenue Efficiency of Domestic and Foreign Islamic Banks: Empirical Evidence from Malaysia. Jurnal Pengurusan, 37, 77–90.

@article{sufian2013assessing,
  title={Assessing the Revenue Efficiency of Domestic and Foreign Islamic Banks: Empirical Evidence from Malaysia},
  author={Sufian, Fadzlan and Kamarudin, Fakarudin and Mohd Noor, Nor Halida Haziaton},
  journal={Jurnal Pengurusan},
 

volume={37},
  number={},
  pages={77—90},
  year={2013},
  doi={},
  publisher={Penerbit UKM},
}

Export Bibliography:

No. of views: 183

   

Article received:  
Accepted for publication:  
Available online: 

Issue logo

37 (2013) 77 – 90

Download PDF

Share via:

Similar Articles

  1. Determinants of Ethical Identity Disclosure in Islamic Banks: An Analysis of Practices in Bahrain and Malaysia
  2. The Mudharabah Deposit Rate Behaviour in Relation to the Conventional Deposit Rate
  3. Workplace Characteristics and Determinants of Over-education and Overskilling in the Manufacturing Sector in Malaysia

Receive updates when new articles are published