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Comparing The Efficiency Of Islamic Bank In Indonesia And Malaysia

Author

Listed:
  • HASIB Fatin Fadhilah

    (Faculty of Economics and Business, Universitas Airlangga, Surabaya)

  • LAILA Nisful

    (Faculty of Economics and Business, Universitas Airlangga, Surabaya)

  • SUKMANINGRUM Puji Sucia

    (Faculty of Economics and Business, Universitas Airlangga, Surabaya)

Abstract

This study measures and compared the efficiency of Islamic banks in Malaysia and Indonesia. This study used a quantitative non-parametic approach by using Data Envelopment Analysis (DEA) VRS assumption, CRS assumption and a statistic tool of Mann-Whitney-U-Test. The samples are 6 Islamic banks in Malaysia and 10 Islamic banks in Indonesia that comply with the specified sample criteria during 2010-2016. The results of this research show that Islamic banks in Indonesia are relatively higher than Islamic banks in Malaysia. The source of inefficiency in Islamic banks in Indonesia is more due to the inefficiency on a scale. While the hypothesis test shows that there are no significant differences of efficiency between Islamic banks in Indonesia and Malaysia.

Suggested Citation

  • HASIB Fatin Fadhilah & LAILA Nisful & SUKMANINGRUM Puji Sucia, 2018. "Comparing The Efficiency Of Islamic Bank In Indonesia And Malaysia," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 70(4), pages 46-67, September.
    • Handle: RePEc:blg:reveco:v:70:y:2018:i:4:p:46-67
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Islamic Bank; Performance; Efficiency; Data Envelopment Analysis (DEA);
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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