Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia

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 revenu...

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Main Authors: Fadzlan Sufian, Fakarudin Kamarudin, Nor Halida Haziaton Mohd Noor
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:http://journalarticle.ukm.my/6960/
http://journalarticle.ukm.my/6960/1/3629-8090-1-PB.pdf
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author Fadzlan Sufian,
Fakarudin Kamarudin,
Nor Halida Haziaton Mohd Noor,
author_facet Fadzlan Sufian,
Fakarudin Kamarudin,
Nor Halida Haziaton Mohd Noor,
author_sort Fadzlan Sufian,
building UKM Institutional Repository
collection Online Access
description 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.
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spelling oai:generic.eprints.org:69602016-12-14T06:42:42Z http://journalarticle.ukm.my/6960/ Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia Fadzlan Sufian, Fakarudin Kamarudin, Nor Halida Haziaton Mohd Noor, 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. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6960/1/3629-8090-1-PB.pdf Fadzlan Sufian, and Fakarudin Kamarudin, and Nor Halida Haziaton Mohd Noor, (2013) Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia. Jurnal Pengurusan, 37 . pp. 77-90. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
spellingShingle Fadzlan Sufian,
Fakarudin Kamarudin,
Nor Halida Haziaton Mohd Noor,
Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia
title Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia
title_full Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia
title_fullStr Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia
title_full_unstemmed Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia
title_short Assessing the revenue efficiency of domestic and foreign Islamic Banks:empirical evidence from Malaysia
title_sort assessing the revenue efficiency of domestic and foreign islamic banks:empirical evidence from malaysia
url http://journalarticle.ukm.my/6960/
http://journalarticle.ukm.my/6960/
http://journalarticle.ukm.my/6960/1/3629-8090-1-PB.pdf