Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh

This study examines the relative efficiency of the nine Islamic subsidiaries and nine commercial banks in Malaysia from the year 2008 to 2010. To measure relative efficiency of the selected banks, the study applies the Data Envelopment Analysis in the analysis. The study adopts the intermediation ap...

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Main Authors: Ahmad, Suraya, Wan Jusoh, Wan Noor Hazlina
Format: Research Reports
Language:English
Published: Research Management Institute (RMI) 2012
Subjects:
Online Access:http://ir.uitm.edu.my/id/eprint/14529/
http://ir.uitm.edu.my/id/eprint/14529/1/LP_SURAYA%20BINTI%20AHMAD%2012_5.pdf
id uitm-14529
recordtype eprints
spelling uitm-145292016-08-10T06:40:58Z http://ir.uitm.edu.my/id/eprint/14529/ Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh Ahmad, Suraya Wan Jusoh, Wan Noor Hazlina Malaysia Financial management. Business finance. Corporation finance This study examines the relative efficiency of the nine Islamic subsidiaries and nine commercial banks in Malaysia from the year 2008 to 2010. To measure relative efficiency of the selected banks, the study applies the Data Envelopment Analysis in the analysis. The study adopts the intermediation approach in defining the inputs and outputs. The study selects personnel expenses and total customers deposits as inputs, while the output is total loans. This study found that the technical inefficiency of the selected banks in 2008 was due to the pure technical inefficiency. This indicated that the scale efficiency was higher than the pure technical efficiency. However, in 2009 and 2010, the pure technical efficiency was higher compared to the scale efficiency. Hence, the technical inefficiency was due to the scale inefficiency. Later, the study compares the efficiency of the Islamic subsidiaries and commercial banks using the independent sample t-test. The study found that there is no significant difference in the technical efficiency and pure technical efficiency level for Islamic subsidiaries and commercial banks. On the other hand, there is a significant difference in the scale efficiency level for both banks at p=0.014. Research Management Institute (RMI) 2012 Research Reports NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/14529/1/LP_SURAYA%20BINTI%20AHMAD%2012_5.pdf Ahmad, Suraya and Wan Jusoh, Wan Noor Hazlina (2012) Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh. [Research Reports] (Submitted)
repository_type Digital Repository
institution_category Local University
institution Universiti Teknologi MARA
building UiTM Institutional Repository
collection Online Access
language English
topic Malaysia
Financial management. Business finance. Corporation finance
spellingShingle Malaysia
Financial management. Business finance. Corporation finance
Ahmad, Suraya
Wan Jusoh, Wan Noor Hazlina
Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh
description This study examines the relative efficiency of the nine Islamic subsidiaries and nine commercial banks in Malaysia from the year 2008 to 2010. To measure relative efficiency of the selected banks, the study applies the Data Envelopment Analysis in the analysis. The study adopts the intermediation approach in defining the inputs and outputs. The study selects personnel expenses and total customers deposits as inputs, while the output is total loans. This study found that the technical inefficiency of the selected banks in 2008 was due to the pure technical inefficiency. This indicated that the scale efficiency was higher than the pure technical efficiency. However, in 2009 and 2010, the pure technical efficiency was higher compared to the scale efficiency. Hence, the technical inefficiency was due to the scale inefficiency. Later, the study compares the efficiency of the Islamic subsidiaries and commercial banks using the independent sample t-test. The study found that there is no significant difference in the technical efficiency and pure technical efficiency level for Islamic subsidiaries and commercial banks. On the other hand, there is a significant difference in the scale efficiency level for both banks at p=0.014.
format Research Reports
author Ahmad, Suraya
Wan Jusoh, Wan Noor Hazlina
author_facet Ahmad, Suraya
Wan Jusoh, Wan Noor Hazlina
author_sort Ahmad, Suraya
title Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh
title_short Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh
title_full Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh
title_fullStr Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh
title_full_unstemmed Benchmarking the efficiency of domestic banks in Malaysia / Suraya Ahmad and Wan Noor Hazlina Wan Jusoh
title_sort benchmarking the efficiency of domestic banks in malaysia / suraya ahmad and wan noor hazlina wan jusoh
publisher Research Management Institute (RMI)
publishDate 2012
url http://ir.uitm.edu.my/id/eprint/14529/
http://ir.uitm.edu.my/id/eprint/14529/1/LP_SURAYA%20BINTI%20AHMAD%2012_5.pdf
first_indexed 2023-09-18T22:51:50Z
last_indexed 2023-09-18T22:51:50Z
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