Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia

The global financial crisis that engulfed the world in the mid of 2007 till the end of 2009 slightly affected the Asian countries such as Malaysia has focused attention on the flaws of the conventional banking system. Islamic banks seem much stronger to recover in financial crisis compared to conve...

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Main Author:	Fatin Syazwani, Safiyuddin
Format:	Thesis
Language:	eng eng
Published:	2014
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/4092/1/s812878.pdf https://etd.uum.edu.my/4092/2/s812878_abstract.pdf
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id	my-uum-etd.4092
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abd. Wahab, Norazlina
topic	HG Finance
spellingShingle	HG Finance Fatin Syazwani, Safiyuddin Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia
description	The global financial crisis that engulfed the world in the mid of 2007 till the end of 2009 slightly affected the Asian countries such as Malaysia has focused attention on the flaws of the conventional banking system. Islamic banks seem much stronger to recover in financial crisis compared to conventional banks because of the inherent nature of Islamic banks, which prohibits the interest payments in all transactions. Thus, this study examines the efficiency level of Islamic and conventional banks during financial crisis particularly in 2007 to 2012. The efficiency of Islamic and conventional banks is measured utilizing Data Envelopment Analysis by adopting the intermediation approach. The data are extracted by Bankscope and Annual Report from 2007 to 2012. The samples consisted of Islamic and conventional banks in Malaysia. The results indicate that pure technical efficiency contributed more to the overall technical efficiency of Islamic banks. In conventional banks, the scale efficiency dominates the overall technical efficiency. In overall, the finding shows that Islamic banks are exhibited higher technical efficiency compared to the conventional banks attributed to the higher pure technical efficiency. Hence, the findings of this study have policy implications, and make a contribution to policy-making by providing empirical evidence on the performance of the Islamic and conventional banks and their efficiency level.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Fatin Syazwani, Safiyuddin
author_facet	Fatin Syazwani, Safiyuddin
author_sort	Fatin Syazwani, Safiyuddin
title	Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia
title_short	Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia
title_full	Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia
title_fullStr	Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia
title_full_unstemmed	Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia
title_sort	efficiency of islamic and conventional banks during financial crisis: empirical evidence from malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2014
url	https://etd.uum.edu.my/4092/1/s812878.pdf https://etd.uum.edu.my/4092/2/s812878_abstract.pdf
_version_	1747827679268175872
spelling	my-uum-etd.40922022-05-18T02:05:07Z Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia 2014 Fatin Syazwani, Safiyuddin Abd. Wahab, Norazlina Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance The global financial crisis that engulfed the world in the mid of 2007 till the end of 2009 slightly affected the Asian countries such as Malaysia has focused attention on the flaws of the conventional banking system. Islamic banks seem much stronger to recover in financial crisis compared to conventional banks because of the inherent nature of Islamic banks, which prohibits the interest payments in all transactions. Thus, this study examines the efficiency level of Islamic and conventional banks during financial crisis particularly in 2007 to 2012. The efficiency of Islamic and conventional banks is measured utilizing Data Envelopment Analysis by adopting the intermediation approach. The data are extracted by Bankscope and Annual Report from 2007 to 2012. The samples consisted of Islamic and conventional banks in Malaysia. The results indicate that pure technical efficiency contributed more to the overall technical efficiency of Islamic banks. In conventional banks, the scale efficiency dominates the overall technical efficiency. In overall, the finding shows that Islamic banks are exhibited higher technical efficiency compared to the conventional banks attributed to the higher pure technical efficiency. 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Efficiency of Islamic and conventional banks during financial crisis: Empirical evidence from Malaysia

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