Measuring Technical Efficiency and Profitability: A Case Study of the Malaysian Commercial Banking System

By Nur Azura Sanusi, Roshanim Koris and Suriyani Muhamad.

Published by The Social Sciences Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

The paper examined the competitiveness of Malaysian commercial banks from 2001-2007. The competitiveness is measured in terms of efficiency and profitability by using data envelopment analysis and EGLS panel regression, respectively. The data collection was obtained from annual report of 27 commercial banks which consist of Islamic and conventional banks during year 2001-2007. The results show that the performance of Malaysian banks has improved since 2001, but there are significant differences within the banking sector, with domestic Islamic banks are more efficient than domestic conventional banks. While the EGLS fixed effect results has shown that efficiency and profitability are insignificantly correlated.

Keywords: Efficiency, Profitability, Banking Industry, DEA, EGLS Panel Regression

International Journal of Interdisciplinary Social Sciences, Volume 4, Issue 11, pp.85-100. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.175MB).

Dr. Nur Azura Sanusi

Lecturer, Department of Economics, University of Malaysia Terengganu, Kuala Terengganu, Terengganu, Malaysia

Roshanim Koris

Lecturer, Department of Economics, University of Malaysia Terengganu, Kuala Terengganu, Terengganu, Malaysia

Dr. Suriyani Muhamad

Lecturer, Department of Economics, University of Malaysia Terengganu, Kuala Terengganu, Terengganu, Malaysia


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