The Comparative Efficiency Between Conventionalbanks And Islamic Banks : Evidence In Malaysia

Chai, Yin Link (2014) The Comparative Efficiency Between Conventionalbanks And Islamic Banks : Evidence In Malaysia. [Final Year Project Report] (Unpublished)

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Abstract

The purpose of this study is to examine the efficiency performance between conventional and Islamic banks over the periods of 2004-2012 in Malaysia. Financial Ratio Analysis (FRA) was employed to evaluate the financial performance, whereas the levels of efficiency scores were computed under Data Envelopment Analysis (DEA). Spearman and Pearson correlation coefficient are used to complement the results of DEA and FRA. Results indicated that all banks have 93.52% of technical efficiency (TE) in overall. Conventional banks exhibit higher efficiency score compared to Islamic banks, which is 94.2% against 91.8%. Meanwhile, DEA results indicate that pure technical efficiency (PTE) is dominant over scale efficiency (SE) in determining the overall TE. On the other hand, the FRA results suggest that Islamic banks are less cost effective, and less profitability compared to conventional banks.

Item Type: Final Year Project Report
Additional Information: Project Report (BSc.) -- Universiti Malaysia Sarawak, 2014.
Uncontrolled Keywords: financial performance, Financial Ratio Analysis (FRA), Data Envelopment Analysis (DEA), Islamic banks.
Subjects: H Social Sciences > HG Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Gani
Date Deposited: 07 Jan 2021 06:48
Last Modified: 30 Jan 2023 08:07
URI: http://ir.unimas.my/id/eprint/33648

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