Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?

Purpose : Globalisation has influenced many countries, over the last few decades with financial globalisation and liberalisation bringing regulatory reforms in the banking sector. Thus, this study aims to fill a gap in the literature by examining the influence of globalisation on Islamic and convent...

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Main Authors: Jubilee, Ribed Vianneca W., Kamarudin, Fakarudin, Abdul Latiff, Ahmed Razman, Hussain, Hafezali Iqbal, Mohamad Anwar, Nazratul Aina
Format: Article
Published: Emerald Publishing Limited 2022
Online Access:http://psasir.upm.edu.my/id/eprint/100996/
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author Jubilee, Ribed Vianneca W.
Kamarudin, Fakarudin
Abdul Latiff, Ahmed Razman
Hussain, Hafezali Iqbal
Mohamad Anwar, Nazratul Aina
author_facet Jubilee, Ribed Vianneca W.
Kamarudin, Fakarudin
Abdul Latiff, Ahmed Razman
Hussain, Hafezali Iqbal
Mohamad Anwar, Nazratul Aina
author_sort Jubilee, Ribed Vianneca W.
building UPM Institutional Repository
collection Online Access
description Purpose : Globalisation has influenced many countries, over the last few decades with financial globalisation and liberalisation bringing regulatory reforms in the banking sector. Thus, this study aims to fill a gap in the literature by examining the influence of globalisation on Islamic and conventional bank productivity in Southeast Asia. Design/methodology/approach : The sample comprised 155 banks (23 Islamic and 132 conventional) from 4 countries from 2008 to 2017. Panel data techniques will be used, together with data envelopment analysis (DEA)-based Malmquist productivity index (MPI), to investigate the impact of chosen main determinants on bank productivity. A panel regression analysis will be performed after generating the productivity index from the DEA-based MPI frontier. Findings : According to the findings, Islamic banks are statistically significantly more productive than conventional banks, and the findings of the t-test are corroborated by the findings of nonparametric tests. Furthermore, the findings of the panel regression model reveal that bank specific factors and macroeconomic variables are significant determinants to bank productivity. Surprisingly, the findings also show that the influence of social globalisation elements tends to be negatively related to conventional bank productivity. Originality/value : This study adds to the existing literature by bridging the globalisation gap in the productivity of the dual banking industry, particularly in the specific context of Southeast Asia, given that the area is representative of Islamic and finance globally.
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institution Universiti Putra Malaysia
institution_category Local University
last_indexed 2025-11-15T13:33:22Z
publishDate 2022
publisher Emerald Publishing Limited
recordtype eprints
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spelling upm-1009962023-06-19T06:36:17Z http://psasir.upm.edu.my/id/eprint/100996/ Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry? Jubilee, Ribed Vianneca W. Kamarudin, Fakarudin Abdul Latiff, Ahmed Razman Hussain, Hafezali Iqbal Mohamad Anwar, Nazratul Aina Purpose : Globalisation has influenced many countries, over the last few decades with financial globalisation and liberalisation bringing regulatory reforms in the banking sector. Thus, this study aims to fill a gap in the literature by examining the influence of globalisation on Islamic and conventional bank productivity in Southeast Asia. Design/methodology/approach : The sample comprised 155 banks (23 Islamic and 132 conventional) from 4 countries from 2008 to 2017. Panel data techniques will be used, together with data envelopment analysis (DEA)-based Malmquist productivity index (MPI), to investigate the impact of chosen main determinants on bank productivity. A panel regression analysis will be performed after generating the productivity index from the DEA-based MPI frontier. Findings : According to the findings, Islamic banks are statistically significantly more productive than conventional banks, and the findings of the t-test are corroborated by the findings of nonparametric tests. Furthermore, the findings of the panel regression model reveal that bank specific factors and macroeconomic variables are significant determinants to bank productivity. Surprisingly, the findings also show that the influence of social globalisation elements tends to be negatively related to conventional bank productivity. Originality/value : This study adds to the existing literature by bridging the globalisation gap in the productivity of the dual banking industry, particularly in the specific context of Southeast Asia, given that the area is representative of Islamic and finance globally. Emerald Publishing Limited 2022-11-22 Article PeerReviewed Jubilee, Ribed Vianneca W. and Kamarudin, Fakarudin and Abdul Latiff, Ahmed Razman and Hussain, Hafezali Iqbal and Mohamad Anwar, Nazratul Aina (2022) Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry? Asia-Pacific Journal of Business Administration, 14 (4). 479 - 515. ISSN 1757-4323 https://www.emerald.com/insight/content/doi/10.1108/APJBA-09-2020-0343/full/html#:~:text=Surprisingly%2C%20the%20findings%20also%20show,related%20to%20conventional%20bank%20productivity. 10.1108/APJBA-09-2020-0343
spellingShingle Jubilee, Ribed Vianneca W.
Kamarudin, Fakarudin
Abdul Latiff, Ahmed Razman
Hussain, Hafezali Iqbal
Mohamad Anwar, Nazratul Aina
Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?
title Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?
title_full Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?
title_fullStr Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?
title_full_unstemmed Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?
title_short Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?
title_sort does globalisation have an impact on dual banking system productivity in selected southeast asian banking industry?
url http://psasir.upm.edu.my/id/eprint/100996/
http://psasir.upm.edu.my/id/eprint/100996/
http://psasir.upm.edu.my/id/eprint/100996/