Do Islamic versus conventional banks progress or regress in productivity level?

This study assesses the differences between Islamic and conventional bank’s productivity. Earlier studies on bank productivity focused on conventional banks, but few have been done on Islamic banks. Therefore, the present study attempts to close the gap in the literature by investigating the product...

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Main Authors: Jubilee, Ribed Vianneca W., Kamarudin, Fakarudin, Abdul Latiff, Ahmed Razman, Hussain, Hafezali Iqbal, Khar, Mang Tan
Format: Article
Language:English
Published: SpringerOpen 2021
Online Access:http://psasir.upm.edu.my/id/eprint/96789/
http://psasir.upm.edu.my/id/eprint/96789/1/ABSTRACT.pdf
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author Jubilee, Ribed Vianneca W.
Kamarudin, Fakarudin
Abdul Latiff, Ahmed Razman
Hussain, Hafezali Iqbal
Khar, Mang Tan
author_facet Jubilee, Ribed Vianneca W.
Kamarudin, Fakarudin
Abdul Latiff, Ahmed Razman
Hussain, Hafezali Iqbal
Khar, Mang Tan
author_sort Jubilee, Ribed Vianneca W.
building UPM Institutional Repository
collection Online Access
description This study assesses the differences between Islamic and conventional bank’s productivity. Earlier studies on bank productivity focused on conventional banks, but few have been done on Islamic banks. Therefore, the present study attempts to close the gap in the literature by investigating the productivity of Islamic and conventional banks in the context of the Middle East, Southeast Asia and South Asia regions. The sample is comprised of 385 banks (66 Islamic banks and 319 conventional banks) from 18 countries with data observations from 2008 to 2017. Panel data techniques with DEA-based MPI will be employed to investigate the impact of selected important factor and bank productivity as indicated by total factor productivity changes (TFPCH). Based on the results, Islamic banks are more productive than conventional banks and the results from t test are further confirmed by the results from nonparametric tests. These results are attributed to the progress in EFFCH. However, the mean difference between Islamic and conventional banks TFPCH is not statistically significant in all regions. The main benefit is that this work will hopefully provide additional insight and complement the existing studies on bank productivity of Islamic and conventional banks that are important to the banks, regulations, investors and researchers.
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spelling upm-967892022-12-01T03:53:24Z http://psasir.upm.edu.my/id/eprint/96789/ Do Islamic versus conventional banks progress or regress in productivity level? Jubilee, Ribed Vianneca W. Kamarudin, Fakarudin Abdul Latiff, Ahmed Razman Hussain, Hafezali Iqbal Khar, Mang Tan This study assesses the differences between Islamic and conventional bank’s productivity. Earlier studies on bank productivity focused on conventional banks, but few have been done on Islamic banks. Therefore, the present study attempts to close the gap in the literature by investigating the productivity of Islamic and conventional banks in the context of the Middle East, Southeast Asia and South Asia regions. The sample is comprised of 385 banks (66 Islamic banks and 319 conventional banks) from 18 countries with data observations from 2008 to 2017. Panel data techniques with DEA-based MPI will be employed to investigate the impact of selected important factor and bank productivity as indicated by total factor productivity changes (TFPCH). Based on the results, Islamic banks are more productive than conventional banks and the results from t test are further confirmed by the results from nonparametric tests. These results are attributed to the progress in EFFCH. However, the mean difference between Islamic and conventional banks TFPCH is not statistically significant in all regions. The main benefit is that this work will hopefully provide additional insight and complement the existing studies on bank productivity of Islamic and conventional banks that are important to the banks, regulations, investors and researchers. SpringerOpen 2021 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/96789/1/ABSTRACT.pdf Jubilee, Ribed Vianneca W. and Kamarudin, Fakarudin and Abdul Latiff, Ahmed Razman and Hussain, Hafezali Iqbal and Khar, Mang Tan (2021) Do Islamic versus conventional banks progress or regress in productivity level? Future Business Journal, 7. art. no. 22. pp. 1-22. ISSN 2314-7210 https://fbj.springeropen.com/articles/10.1186/s43093-021-00065-w 10.1186/s43093-021-00065-w
spellingShingle Jubilee, Ribed Vianneca W.
Kamarudin, Fakarudin
Abdul Latiff, Ahmed Razman
Hussain, Hafezali Iqbal
Khar, Mang Tan
Do Islamic versus conventional banks progress or regress in productivity level?
title Do Islamic versus conventional banks progress or regress in productivity level?
title_full Do Islamic versus conventional banks progress or regress in productivity level?
title_fullStr Do Islamic versus conventional banks progress or regress in productivity level?
title_full_unstemmed Do Islamic versus conventional banks progress or regress in productivity level?
title_short Do Islamic versus conventional banks progress or regress in productivity level?
title_sort do islamic versus conventional banks progress or regress in productivity level?
url http://psasir.upm.edu.my/id/eprint/96789/
http://psasir.upm.edu.my/id/eprint/96789/
http://psasir.upm.edu.my/id/eprint/96789/
http://psasir.upm.edu.my/id/eprint/96789/1/ABSTRACT.pdf