Does productivity of Islamic banks endure progress or regress?

Fakarudin Kamarudin · Chiun Zack Hue · Fadzlan Sufian · Nazratul Aina Mohamad Anwar

50 citations0/0 files storedInternational Journal of Ethics and Systems

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Islamic Finance and Banking Studies Banking stability, regulation, efficiency Efficiency Analysis Using DEA

Abstract

Purpose This paper aims to explore the level of productivity of Islamic banks specifically in selected Southeast Asian Countries from the period 2006 to 2014. Besides, this study also investigates the potential determinants of bank-specific characteristics and macroeconomic conditions that may influence the productivity of banking sector. Design/methodology/approach The present study gathers data on the 29 Islamic banks from Southeast Asian countries, namely, Brunei, Indonesia and Malaysia. The productivity level of the Islamic banks is evaluated using the data envelopment analysis-based Malmquist productivity index method. The authors then used a panel regression analysis framework based on the ordinary least square to identify potential determinants. Findings The domestic and foreign Islamic banks have exhibited progress in total factor productivity change solely attributed to the increase in efficiency change (EFFCH) which were mainly managerial rather than scale related. Foreign-owned banks have been slightly more productive compared to their domestic-owned bank counterparts, attributed to a higher EFFCH but insignificantly different. Furthermore, capitalisation, liquidity and world financial crisis determinants have significantly influenced productivity level of Islamic banks. Originality/value The study on the productivity of Islamic banking is still in its formative stage. To date, very limited study has been conducted to examine the productivity level in Southeast Asian, which is a strong regional hub for Islamic banking. This study intends to fill the gaps with a specific focus on the productivity level, specifically narrowing down to Southeast Asian countries in the domestic and foreign Islamic banking sector.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 50 citations exist upstream.

References

1978Measuring the efficiency of decision making units 1984Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis 2016Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries 1999Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software 1982The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity 1953Index numbers and indifference surfaces 1997Problem loans and cost efficiency in commercial banks 1977INPUTS, OUTPUTS, AND A THEORY OF PRODUCTION AND COST AT DEPOSITORY FINANCIAL INSTITUTIONS

Cited by

2020Does country governance and bank productivity Nexus matters?2021The efficiency of Islamic Banks in the Southeast Asia (SEA) Region 2020The Impact of the Bank Regulation and Supervision on the Efficiency of Islamic Banks 2021The influence of earnings management on bank efficiency: the case of frontier markets

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.