Comparing Efficiency and Productivity in Islamic Banking : Case Study Indonesia, Malaysia and Pakistan

Rodoni, Ahmad; Salim, Arskal; Amalia, Euis; Rakhmadi, Rezki Syahri

doi:10.15408/aiq.v9i2.5153

Cited by 24 publications

(22 citation statements)

References 3 publications

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“…On the other hand, Rodoni et al [49] undertook a comparison of the productivity and efficiency of the Islamic banking sector between 2009 and 2013 in Pakistan, Indonesia and Malaysia; the data included 31 banks across these three countries. Using the Malmquist productivity index (MPI) to gauge productivity and Data Envelopment Analysis (DEA) in gauging efficiency the findings from the study found that the efficiency of the sector in Malaysia was far better compared to Indonesia while in Pakistan, the rate of efficiency was near to 100% during this period.…”

Section: Literature Reviewmentioning

confidence: 99%

Do Islamic versus conventional banks progress or regress in productivity level?

et al. 2021

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This study assesses the differences between Islamic and conventional bank’s productivity. Earlier studies on bank productivity focused on conventional banks, but few have been done on Islamic banks. Therefore, the present study attempts to close the gap in the literature by investigating the productivity of Islamic and conventional banks in the context of the Middle East, Southeast Asia and South Asia regions. The sample is comprised of 385 banks (66 Islamic banks and 319 conventional banks) from 18 countries with data observations from 2008 to 2017. Panel data techniques with DEA-based MPI will be employed to investigate the impact of selected important factor and bank productivity as indicated by total factor productivity changes (TFPCH). Based on the results, Islamic banks are more productive than conventional banks and the results from t test are further confirmed by the results from nonparametric tests. These results are attributed to the progress in EFFCH. However, the mean difference between Islamic and conventional banks TFPCH is not statistically significant in all regions. The main benefit is that this work will hopefully provide additional insight and complement the existing studies on bank productivity of Islamic and conventional banks that are important to the banks, regulations, investors and researchers.

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Section: Literature Reviewmentioning

confidence: 99%

Do Islamic versus conventional banks progress or regress in productivity level?

et al. 2021

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“…However, few studied have discussed the productivity analysis of social funds in Islamic banks. In the term of productivity analysis, the Islamic banks' productivity continues to increase (Afiatun & Wiryono, 2010;Arjomandi et al, 2012;Rodoni et al, 2017). After spinning off, Islamic banks also increased their productivity (Norfitriani, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Antecedents of Social Funds’ Productivity of Islamic Banks in Indonesia

Andriyani

Usman

Pambuko

2020

HSSR

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Purpose: The study aims to analyse the social funds’ productivity of Islamic banks in Indonesia and the antecedents of it. The study will measure the social fund productivity followed by the investigation about the variable which can determine the Islamic bank productivity. Methodology: The study conducted at nine Islamic banks Indonesia. Two stages of the Malmquist productivity index were applied to annual data from 2012-2018. The variables which are tested its effect on social funds’ productivity return on asset, operational efficiency, inflation, OPEC oil price, and economic growth. Main Findings: social funds’ productivity of Islamic banks in Indonesia has experienced progress during the observation period. It is supported by the progress on technological change and efficiency change. The antecedents of social funds’ productivity return on asset and operational efficiency, while macroeconomics conditions have no significant effect on social funds’ productivity. Applications of this study: This study enriches the research on Islamic banks and gives the recommendation for policymakers to supervise better and for banks’ managers to improve the social funds’ productivity. Novelty/Originality of this study: This research is the preliminary study on the determinant of social funds’ productivity in Islamic banks.

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“…Adawiyah (2015) found that there are no efficiency differences between Islamic banks and foreign banks. Rodoni et al (2017) concluded that the Indonesian Islamic banking industry is less efficient rather than Islamic banking sector in Malaysia and Pakistan.…”

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confidence: 99%

Spin-off policy and efficiency in the Indonesian Islamic banking industry

Arif

Haribowo

Suherlan

2018

Banks and Bank Systems

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Indonesian Islamic Banking Act requires conventional banks to spin-off their Islamic business units if they had fulfilled the spin-off criteria. Some of the Islamic business units had done the spin-off process although they are not fulfilling the spin-off criteria. The data showed that there is an efficiency decline after the spun-off. This study is going to examine the spin-off’s impact on the efficiency in spin-off banks. The method used in this paper is a difference-in-differences analysis. The sample used is four spin’s banks as treatment objects and two Islamic full-pledge banks as control objects. This research shows that there is an impact of spin-off policy on the efficiency in spin-off banks. There is an efficiency decrease in spin-off banks after the activities. It implies that the spin-off policy is not the only strategy that can be implemented. The policy-makers can choose other strategies to enhance the development of Islamic banking industry.

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Comparing Efficiency and Productivity in Islamic Banking : Case Study Indonesia, Malaysia and Pakistan

Cited by 24 publications

References 3 publications

Do Islamic versus conventional banks progress or regress in productivity level?

Do Islamic versus conventional banks progress or regress in productivity level?

Antecedents of Social Funds’ Productivity of Islamic Banks in Indonesia

Spin-off policy and efficiency in the Indonesian Islamic banking industry

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