Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia

The impact of foreign banks ’ entry on the conventional banking sector has been well documented in the literature. However, empirical evidence on the impact of foreign banks ’ entry on the Malaysian Islamic banking sector is completely missing from the literature. By employing the Malmquist Producti...

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Main Author: Sufian, Fadzlan
Format: Article
Language:English
Published: Palgrave McMillan 2010
Subjects:
Online Access:http://irep.iium.edu.my/5247/1/55659371.pdf
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author Sufian, Fadzlan
author_facet Sufian, Fadzlan
author_sort Sufian, Fadzlan
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description The impact of foreign banks ’ entry on the conventional banking sector has been well documented in the literature. However, empirical evidence on the impact of foreign banks ’ entry on the Malaysian Islamic banking sector is completely missing from the literature. By employing the Malmquist Productivity Index method, the article provides, for the first time, empirical evidence on the impact of foreign banks ’ entry on the efficiency and productivity of the Islamic banking sector. The empirical findings indicate that the De Novo foreign Islamic banks have been relatively more efficient and productive compared to their domestic and foreign Islamic bank counterparts. The results also suggest that the Malaysian Islamic banking sector has exhibited a higher level of total factor productivity during the post De Novo foreign Islamic banks ’ entry period.
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spelling oai:generic.eprints.org:52472012-01-20T08:46:49Z http://irep.iium.edu.my/5247/ Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia Sufian, Fadzlan HG1501 Banking The impact of foreign banks ’ entry on the conventional banking sector has been well documented in the literature. However, empirical evidence on the impact of foreign banks ’ entry on the Malaysian Islamic banking sector is completely missing from the literature. By employing the Malmquist Productivity Index method, the article provides, for the first time, empirical evidence on the impact of foreign banks ’ entry on the efficiency and productivity of the Islamic banking sector. The empirical findings indicate that the De Novo foreign Islamic banks have been relatively more efficient and productive compared to their domestic and foreign Islamic bank counterparts. The results also suggest that the Malaysian Islamic banking sector has exhibited a higher level of total factor productivity during the post De Novo foreign Islamic banks ’ entry period. Palgrave McMillan 2010-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5247/1/55659371.pdf Sufian, Fadzlan (2010) Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia. Journal of Financial Services Marketing, 15 (3). pp. 241-258. ISSN 1363-0539 (print); 1479-1846 (online) http://www.palgrave-journals.com/fsm/index.html DOI:10.1057/fsm.2010.20
spellingShingle HG1501 Banking
Sufian, Fadzlan
Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia
title Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia
title_full Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia
title_fullStr Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia
title_full_unstemmed Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia
title_short Productivity, technology and efficiency of De Novo Islamic banks: empirical evidence from Malaysia
title_sort productivity technology and efficiency of de novo islamic banks empirical evidence from malaysia
topic HG1501 Banking
url http://irep.iium.edu.my/5247/1/55659371.pdf
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