COMPARING THE EFFICIENCY OF ISLAMIC BANK IN INDONESIA AND MALAYSIA

LAILA Nisful , Universitas Airlangga, Surabaya, Indonesia

MAULIDIYAH Hikmah, Universitas Airlangga, Surabaya, Indonesia

CAHYONO Eko Fajar , Universitas Airlangga, Surabaya, Indonesia

Abstract:
This study measures and compared the efficiency of Islamic banks in Malaysia and Indonesia. This study used a quantitative non-parametric 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 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.

Keywords: Islamic Bank, Performance, Efficiency, Data Envelopment Analysis (DEA)

JEL Classification: G21

Volume: 70, Issue: 2

Pages: 48 - 67

Publication date: August, 2018

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/70205laila&maulidiyah&cahyono&fianto.pdf

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