A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia
This paper evaluates the nature and extent of productivity change of the co-operative, Islamic and conventional banks in Malaysia over the period of 2006-2010. Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) is a co-operative bank that has been the backbone of the Malaysian co-operative movement...
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| Format: | Article |
| Language: | English |
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Scientific & Academic Publishing
2013
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| Online Access: | http://ir.unimas.my/id/eprint/18337/ http://ir.unimas.my/id/eprint/18337/1/Azmah.pdf |
| _version_ | 1848838492456484864 |
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| author | Azmah, Othman Fatimah, Kari Rosita, Hamdan |
| author_facet | Azmah, Othman Fatimah, Kari Rosita, Hamdan |
| author_sort | Azmah, Othman |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This paper evaluates the nature and extent of productivity change of the co-operative, Islamic and conventional banks in Malaysia over the period of 2006-2010. Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) is a co-operative bank that has been the backbone of the Malaysian co-operative movement. Bank Rakyat had played a significant role by continuously supporting the co-operative sector in contributing to the country’s economy. This study utilized a non-parametric Data Envelopment Analysis (DEA) methodology and Malmquist productivity index (MPI) to estimate the individual bank efficiency and productivity changes within this period. The results from this analysis showed that 64.3 percent of banks studied had total factor productivity (TFP) progress. Out of this 44 percent are Islamic banks. The MPI index summary had shown that TFP had regressed in 2007 by 6.2 percent. TFP summary of annual mean for the 5 year period however, showed a progressed in TFP of 1.5 percent that was contributed by 2.7 percent increase in technical efficiency. Results had indicated that Bank Rakyat is among the top banks that have achieved TFP increased out of the fourteen banks studied. The second stage empirical results based on Tobit regression also suggested that bank’s assets, status and loan intensity are statistically significant in determining TFP. Environmental factors however, were found to be insignificant determinant. |
| first_indexed | 2025-11-15T06:56:25Z |
| format | Article |
| id | unimas-18337 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:56:25Z |
| publishDate | 2013 |
| publisher | Scientific & Academic Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-183372022-01-24T07:25:24Z http://ir.unimas.my/id/eprint/18337/ A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia Azmah, Othman Fatimah, Kari Rosita, Hamdan HB Economic Theory This paper evaluates the nature and extent of productivity change of the co-operative, Islamic and conventional banks in Malaysia over the period of 2006-2010. Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) is a co-operative bank that has been the backbone of the Malaysian co-operative movement. Bank Rakyat had played a significant role by continuously supporting the co-operative sector in contributing to the country’s economy. This study utilized a non-parametric Data Envelopment Analysis (DEA) methodology and Malmquist productivity index (MPI) to estimate the individual bank efficiency and productivity changes within this period. The results from this analysis showed that 64.3 percent of banks studied had total factor productivity (TFP) progress. Out of this 44 percent are Islamic banks. The MPI index summary had shown that TFP had regressed in 2007 by 6.2 percent. TFP summary of annual mean for the 5 year period however, showed a progressed in TFP of 1.5 percent that was contributed by 2.7 percent increase in technical efficiency. Results had indicated that Bank Rakyat is among the top banks that have achieved TFP increased out of the fourteen banks studied. The second stage empirical results based on Tobit regression also suggested that bank’s assets, status and loan intensity are statistically significant in determining TFP. Environmental factors however, were found to be insignificant determinant. Scientific & Academic Publishing 2013 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18337/1/Azmah.pdf Azmah, Othman and Fatimah, Kari and Rosita, Hamdan (2013) A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia. American Journal of Economics, 3 (5C). pp. 184-190. ISSN 2166-4951 http://www.sapub.org/journal/archive.aspx?journalid=1083&issueid=1526 DOI: 10.5923/c.economics.201301.31 |
| spellingShingle | HB Economic Theory Azmah, Othman Fatimah, Kari Rosita, Hamdan A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia |
| title | A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia |
| title_full | A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia |
| title_fullStr | A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia |
| title_full_unstemmed | A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia |
| title_short | A Comparative Analysis of the Co-operative, Islamic and Conventional Banks in Malaysia |
| title_sort | comparative analysis of the co-operative, islamic and conventional banks in malaysia |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/18337/ http://ir.unimas.my/id/eprint/18337/ http://ir.unimas.my/id/eprint/18337/ http://ir.unimas.my/id/eprint/18337/1/Azmah.pdf |