The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach

This paper investigates the performance of the Malaysian Islamic banking sector during the period 2001–2005. In the first stage, the productivity estimates of individual banks are evaluated using the nonparametric Malmquist Productivity Index (MPI). A multivariate analysis is employed in the second...

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Main Authors:	Sufian, Fadzlan, Haron, Razali
Format:	Article
Language:	English
Published:	Inderscience Publisher UK 2008
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/10256/ http://irep.iium.edu.my/10256/ http://irep.iium.edu.my/10256/ http://irep.iium.edu.my/10256/1/IJAF_sources_and_determinants_of_productivity_growth-malaysian_banking.pdf

id	iium-10256
recordtype	eprints
spelling	iium-102562011-12-22T09:22:13Z http://irep.iium.edu.my/10256/ The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach Sufian, Fadzlan Haron, Razali HG1501 Banking This paper investigates the performance of the Malaysian Islamic banking sector during the period 2001–2005. In the first stage, the productivity estimates of individual banks are evaluated using the nonparametric Malmquist Productivity Index (MPI). A multivariate analysis is employed in the second stage to determine factors that influence the productivity of the domestic Islamic Banking Scheme (IBS) banks, the foreign IBS banks and the full-fledged Islamic banks. The empirical findings suggest that during the period of study, the Malaysian Islamic banking sector exhibited progress in productivity, attributed to an increase in efficiency rather than to technological change. The empirical findings suggest that profitability and bank size have positive relationships with Malaysian Islamic banks' productivity, while capitalisation and market share exhibit negative relationships with it. The results also suggest that Malaysian Islamic banks that are more efficient are the ones that pay Zakat (annual levy on the wealth of a Muslim). Inderscience Publisher UK 2008 Article PeerReviewed application/pdf en http://irep.iium.edu.my/10256/1/IJAF_sources_and_determinants_of_productivity_growth-malaysian_banking.pdf Sufian, Fadzlan and Haron, Razali (2008) The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach. International Journal of Accounting and Finance, 1 (2). pp. 193-215. ISSN 1752-8224 (Print) 1752-8232 (Online) http://www.inderscience.com/search/index.php?action=record&rec_id=20303 10.1504/IJAF.2008.020303
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Sufian, Fadzlan Haron, Razali The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach
description	This paper investigates the performance of the Malaysian Islamic banking sector during the period 2001–2005. In the first stage, the productivity estimates of individual banks are evaluated using the nonparametric Malmquist Productivity Index (MPI). A multivariate analysis is employed in the second stage to determine factors that influence the productivity of the domestic Islamic Banking Scheme (IBS) banks, the foreign IBS banks and the full-fledged Islamic banks. The empirical findings suggest that during the period of study, the Malaysian Islamic banking sector exhibited progress in productivity, attributed to an increase in efficiency rather than to technological change. The empirical findings suggest that profitability and bank size have positive relationships with Malaysian Islamic banks' productivity, while capitalisation and market share exhibit negative relationships with it. The results also suggest that Malaysian Islamic banks that are more efficient are the ones that pay Zakat (annual levy on the wealth of a Muslim).
format	Article
author	Sufian, Fadzlan Haron, Razali
author_facet	Sufian, Fadzlan Haron, Razali
author_sort	Sufian, Fadzlan
title	The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach
title_short	The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach
title_full	The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach
title_fullStr	The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach
title_full_unstemmed	The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach
title_sort	sources and determinants of productivity growth in the malaysian islamic banking sector: a non-stochastic frontier approach
publisher	Inderscience Publisher UK
publishDate	2008
url	http://irep.iium.edu.my/10256/ http://irep.iium.edu.my/10256/ http://irep.iium.edu.my/10256/ http://irep.iium.edu.my/10256/1/IJAF_sources_and_determinants_of_productivity_growth-malaysian_banking.pdf
first_indexed	2023-09-18T20:19:40Z
last_indexed	2023-09-18T20:19:40Z
_version_	1777408022522363904

The sources and determinants of productivity growth in the Malaysian Islamic banking sector: a non-stochastic frontier approach

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