The degree of competition in the Malaysian dual banking industry
The purpose of this study is to evaluate the degree of competition in the Malaysian dual banking industry to address the question of whether Islamic banks are able to cope with competition from the well-established conventional banks. The Panzar-Rosse (PR) method has been used to measure the degree...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/74128/ http://psasir.upm.edu.my/id/eprint/74128/1/The%20degree%20of%20competition%20in%20the%20Malaysian%20dual%20banking%20industry%20%281%29.pdf |
| _version_ | 1848857438978048000 |
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| author | Mohammed, Nafisah Muhammad, Junaina Ismail, Abdul Ghafar |
| author_facet | Mohammed, Nafisah Muhammad, Junaina Ismail, Abdul Ghafar |
| author_sort | Mohammed, Nafisah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The purpose of this study is to evaluate the degree of competition in the Malaysian dual banking industry to address the question of whether Islamic banks are able to cope with competition from the well-established conventional banks. The Panzar-Rosse (PR) method has been used to measure the degree of competition in Islamic compared with conventional banking market over the period of 1997-2016. Present study uses static panel data estimation to estimate the developed models. Results from the H-statistics values using total income show that level of competition in the Islamic banking market is more intense than conventional banking market. Hence, providing evidence that Islamic banks are able to
compete with conventional banks that have long history of establishment. The H-statistic values using total interest income also indicate the same result, hence supporting the robustness of these results. The findings also show the effectiveness of policy changes adopted by Bank Negara Malaysia in order to increase level of competition in both banking markets. Hence, knowledge on this issue is important to the policy makers for them to formulate new policy regarding banking competition. |
| first_indexed | 2025-11-15T11:57:34Z |
| format | Article |
| id | upm-74128 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:57:34Z |
| publishDate | 2018 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-741282021-09-22T21:13:24Z http://psasir.upm.edu.my/id/eprint/74128/ The degree of competition in the Malaysian dual banking industry Mohammed, Nafisah Muhammad, Junaina Ismail, Abdul Ghafar The purpose of this study is to evaluate the degree of competition in the Malaysian dual banking industry to address the question of whether Islamic banks are able to cope with competition from the well-established conventional banks. The Panzar-Rosse (PR) method has been used to measure the degree of competition in Islamic compared with conventional banking market over the period of 1997-2016. Present study uses static panel data estimation to estimate the developed models. Results from the H-statistics values using total income show that level of competition in the Islamic banking market is more intense than conventional banking market. Hence, providing evidence that Islamic banks are able to compete with conventional banks that have long history of establishment. The H-statistic values using total interest income also indicate the same result, hence supporting the robustness of these results. The findings also show the effectiveness of policy changes adopted by Bank Negara Malaysia in order to increase level of competition in both banking markets. Hence, knowledge on this issue is important to the policy makers for them to formulate new policy regarding banking competition. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/74128/1/The%20degree%20of%20competition%20in%20the%20Malaysian%20dual%20banking%20industry%20%281%29.pdf Mohammed, Nafisah and Muhammad, Junaina and Ismail, Abdul Ghafar (2018) The degree of competition in the Malaysian dual banking industry. Jurnal Ekonomi Malaysia, 52 (3). pp. 71-89. ISSN 0126-1962; ESSN: 2716-6058 https://www.ukm.my/jem/article/the-degree-of-competition-in-the-malaysian-dual-banking-industry/ http://dx.doi.org/10.17576/JEM-2018-5203-6 |
| spellingShingle | Mohammed, Nafisah Muhammad, Junaina Ismail, Abdul Ghafar The degree of competition in the Malaysian dual banking industry |
| title | The degree of competition in the Malaysian dual banking industry |
| title_full | The degree of competition in the Malaysian dual banking industry |
| title_fullStr | The degree of competition in the Malaysian dual banking industry |
| title_full_unstemmed | The degree of competition in the Malaysian dual banking industry |
| title_short | The degree of competition in the Malaysian dual banking industry |
| title_sort | degree of competition in the malaysian dual banking industry |
| url | http://psasir.upm.edu.my/id/eprint/74128/ http://psasir.upm.edu.my/id/eprint/74128/ http://psasir.upm.edu.my/id/eprint/74128/ http://psasir.upm.edu.my/id/eprint/74128/1/The%20degree%20of%20competition%20in%20the%20Malaysian%20dual%20banking%20industry%20%281%29.pdf |