Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks

Kamarudin, Fakarudin; Sufian, Fadzlan; Nassir, Annuar

doi:10.1016/j.cya.2016.07.006

Cited by 46 publications

(55 citation statements)

References 32 publications

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“…That said, arguably Islamic banks in Indonesia are more affected by financial crisis. Kamarudin et al (2016b) concluded that the impact of the financial crisis on the level of banking efficiency actually occurred after the crisis, not during a crisis, due to the time lag or time lapse until the impact begins to be felt in the financial and banking industries. The results are relevant to Hidayati et al (2017) that Islamic banks and Islamic business units in Indonesia did not function efficiently in its intermediation.…”

Section: Discussionmentioning

confidence: 99%

Financial and Social Efficiency on Indonesian Islamic Banks

Rusydiana¹,

Marlina²

2019

JIMF

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This paper explores financial and social efficiency in one assessment framework. Inorder to measure efficiency level of Islamic Banking Industry, this study uses DataEnvelopment Analysis (DEA) and Free Disposal Hull (FDH) methods. The resultsshow that the level of financial efficiency of Islamic banks in Indonesia from 2013 to2018 tends to decrease. On the contrary, the level of social efficiency of Islamic banksin Indonesia has a tendency to increase. Furthermore, the value of social efficiency ofIslamic banks in Indonesia was relatively lower compared to the value of financialefficiency. Within the Financial-Social Efficiency Quadrant framework, the studyclassified two Islamic banks in quadrant 1, three in quadrant 2, two in quadrant 3,and four in quadrant 4. It is imperative for Islamic banks that are in the low level of‘social efficiency’ to develop a policy to keep in line with the five factors of maqashidsharia apart of maintaining efficiency in order to reach maslahah. For the regulators,the social efficiency measurement framework could be an alternative in consideringIslamic bank performance beyond financial efficiency.

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Section: Discussionmentioning

confidence: 99%

Financial and Social Efficiency on Indonesian Islamic Banks

Rusydiana¹,

Marlina²

2019

JIMF

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“…The study shows a positive and significant relationship between inflation rate and the performance of MFIs as more borrowers still can be reached even in a high inflationary environment. In the study of Kamarudin et al (2016), they also found that inflation rate has a positive relationship with the profitability of both small and big banks. When the inflation rate is increased, banks will impose high servicing charges on their customers.…”

Section: Literature Reviewsmentioning

confidence: 93%

“…The impacts of inflation rate (lnINF) are significantly positive at 1% level for social efficiency in all models, and Model 4 is specifically for financial efficiency. The number of borrowers increases even though the interest rate is higher because they anticipate much higher inflation in future that will lead to much higher interest rates (Bibi et al, 2018;Kamarudin et al, 2016). Besides, the higher interest rate during inflation may impact borrower's incentives to default.…”

Section: Determinants Of Efficiency Level In Mfismentioning

confidence: 99%

Impact of Rule of Law and Government Size to the Microfinance Efficiency

Hussain¹,

Kot

Kamarudin

et al. 2020

Economic Research-Ekonomska Istraživanja

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“…We used the same inputs and output variables to determine the efficiency under the SFA approach. Note that we included year dummies in the SFA estimation to control for time effects, and used a truncated normal distribution assumption for the inefficiency term (For a more detailed discussion of the estimation process, see (Baik et al, 2013;Ali, 2015;Kamarudin et al, 2016;Nabi et al, 2019;Samad, 2019). Table 1 presents the summary statistics of our input, output and efficiency measures.…”

Section: Input and Output Variables And Estimation Of Efficiencymentioning

confidence: 99%

Are Islamic Banks Less Efficient than other Banks? Evidence from Bangladesh

Haque

Sohel²

2019

Asian Economic and Financial Review

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Considering the recent shrinkage in Islamic banks' profitability in Bangladesh, this study investigated whether these banks are less efficient than the conventional and mixed banks. Using 250 firm-year observations from 38 private commercial banks for the years from 2011 to 2017 and estimating operational efficiency through the Data Envelopment and Stochastic Frontier Analyses, we found robust evidence that Islamic banks are less efficient than the conventional and mixed banks. In additional analysis, it was found that the lower efficiency of Islamic banks was driven by their noninvestment income. A significant negative shift in Islamic banks' efficiency was evident in the most recent years compared to the earliest periods in our sample window. These findings helped us explain why the relative profitability of Islamic banks has declined recently. We suggest that Islamic banks' management pay more attention to their portfolio of non-investment products and services in order to remain competitive in the fast-growing banking landscape in Bangladesh. Contribution/ Originality: This study contributes to the existing literature on estimating banks' efficiency through the techniques of frontier analysis. While revenue is one of the primary sources of cash inflows, research examining banks' efficiency in generating revenues by utilizing their resources is scarce. We filled this gap in the literature.

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Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks

Abstract: Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks Crisis financiera global, propiedad y eficiencia de las ganancias en los bancos comerciales estatales y privados en Bangladesh

Cited by 46 publications

References 32 publications

Financial and Social Efficiency on Indonesian Islamic Banks

Financial and Social Efficiency on Indonesian Islamic Banks

Impact of Rule of Law and Government Size to the Microfinance Efficiency

Are Islamic Banks Less Efficient than other Banks? Evidence from Bangladesh

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