Malaysian islamic banks’ efficiency: an intra-bank comparative analysis of islamic windows and full-fledged subsidiaries

摘要: ABSTRACTThis paper aims to fill an apparent dearth of empirical studies that compare the efficiency Islamic banks in Malaysia during their operation as windows and later transformation full-fledged banks. Data obtained from annual financial reports sampled is analyzed using Envelopment Analysis (DEA) via DEAP 2.1 software assess both technical scale under sample. Results indicate have improved over years tenus although fonner takes prominence. In general were found be more efficient compared being subsidiaries. This augurs well for cunent disposition where, per Financial Service Act 2013, may now operate hitherto banking window status.Keywords: Scale Efficiency; Technical Window; Full-Fledged Banks.(ProQuest: ... denotes formulae omitted.)1. INTRODUCTIONThe industry arguably most regulated any part world. due a plethora reasons including nature product - money, dual but conflicting obligations liquidity profitability depositors shareholders respectively. As such, need cannot discounted. rightly noted by Sufian (2007b), factors like globalisation, deregulation, innovation, etc consequential implication stability advertises place performance upon themselves sort through often-impassioned arguments. Therefore, it design rather than happenstance recently, numerous policies academic attention has been placed on banks' (Hasan, Koetter, & Wedow, 2009). However, contrast enormous researches especially conventional perspective, perspective leaves lacuna extant literature. ironical viewed against backdrop monumental growth witnessed since early 2000 (Laldin, 2008).The system (IBS) gradually becoming global phenomenon incontrovertible one major hubs burgeoning industry. instance, operates two folds different acts vis. Services 2013 ServicesAct 2014. there are which grown tremendously past (Mokhtar, Abdullah, Al-Habshi, 2006). report Bank Negara (Central Malaysia), sector increased total assets RM 434.6 million 2011. amounted 22.4% country at end 2011 (Porter, 2012).Arguably, gradual development reflected its ability withstand crisis. According Derbel, Bouraoui Dammak (2011), effect 2007/2008 crisis relatively mild arouses interest whether these counterparts. this regard, types terms some benchmarks. For Bader, Mohamad, Ariff Hassan (2008) Rafiuddin Alam (2012) profit while cost efficient. not unexpected given either bank's operational philosophy differs.1 lack based intra-banking case, yet window. …