Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA)

The objective of this study is to compare the cost, revenue and profit efficiency of Islamic and conventional banks in Malaysia over the period 2006 to 2009. To represent the Malaysian Islamic and conventional banking sector, a sample of 39 banks were selected to participate in the study. The level...

Full description

Bibliographic Details
Main Authors: Kamarudin, Fakarudin, Yahya, Mohamed Hisham
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2013
Online Access:http://psasir.upm.edu.my/id/eprint/28374/
http://psasir.upm.edu.my/id/eprint/28374/1/28374.pdf
_version_ 1848846099506266112
author Kamarudin, Fakarudin
Yahya, Mohamed Hisham
author_facet Kamarudin, Fakarudin
Yahya, Mohamed Hisham
author_sort Kamarudin, Fakarudin
building UPM Institutional Repository
collection Online Access
description The objective of this study is to compare the cost, revenue and profit efficiency of Islamic and conventional banks in Malaysia over the period 2006 to 2009. To represent the Malaysian Islamic and conventional banking sector, a sample of 39 banks were selected to participate in the study. The level of efficiencies was measured using the Data Envelopment Analysis (DEA) method, which applied the intermediation approach. The result shows that the levels of cost and profit efficiency for Malaysian Islamic banks are lower compared to the Malaysian conventional banks. The difference levels between cost and profit efficiency in the Malaysian banking sector are not influenced by revenue efficiency but, rather are subject to influence by internal and external factors.
first_indexed 2025-11-15T08:57:20Z
format Article
id upm-28374
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T08:57:20Z
publishDate 2013
publisher Universiti Putra Malaysia Press
recordtype eprints
repository_type Digital Repository
spelling upm-283742015-09-21T02:25:24Z http://psasir.upm.edu.my/id/eprint/28374/ Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA) Kamarudin, Fakarudin Yahya, Mohamed Hisham The objective of this study is to compare the cost, revenue and profit efficiency of Islamic and conventional banks in Malaysia over the period 2006 to 2009. To represent the Malaysian Islamic and conventional banking sector, a sample of 39 banks were selected to participate in the study. The level of efficiencies was measured using the Data Envelopment Analysis (DEA) method, which applied the intermediation approach. The result shows that the levels of cost and profit efficiency for Malaysian Islamic banks are lower compared to the Malaysian conventional banks. The difference levels between cost and profit efficiency in the Malaysian banking sector are not influenced by revenue efficiency but, rather are subject to influence by internal and external factors. Universiti Putra Malaysia Press 2013-10 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/28374/1/28374.pdf Kamarudin, Fakarudin and Yahya, Mohamed Hisham (2013) Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA). Pertanika Journal of Social Sciences & Humanities, 21 (spec. Oct.). pp. 1-18. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2021%20%28S%29%20Oct.%202013/01%20Page%201-18.pdf
spellingShingle Kamarudin, Fakarudin
Yahya, Mohamed Hisham
Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA)
title Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA)
title_full Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA)
title_fullStr Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA)
title_full_unstemmed Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA)
title_short Cost, revenue and profit efficiency in Islamic vs. conventional banks: empirical evidence using Data Envelopment Analysis (DEA)
title_sort cost, revenue and profit efficiency in islamic vs. conventional banks: empirical evidence using data envelopment analysis (dea)
url http://psasir.upm.edu.my/id/eprint/28374/
http://psasir.upm.edu.my/id/eprint/28374/
http://psasir.upm.edu.my/id/eprint/28374/1/28374.pdf