Concentration, Competition, And Efficiency Of Malaysian Banks: Islamic Vs Conventional Banks
The presence study aims to examine the market concentration, competition and the efficiency performance of conventional and Islamic banks in Malaysian banking industry over the period of 2008 to 2014. This study employs concentration ratio and Herfindahl-Hirschman Index to measure the market conce...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
International Academy of Business and Economics
2017
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/19310/7/CONCENTRATION.pdf http://ir.unimas.my/id/eprint/19310/ http://dx.doi.org/10.18374/JABE-17-4.10 |
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| Institution: | Universiti Malaysia Sarawak |
| Language: | English |
| Summary: | The presence study aims to examine the market concentration, competition and the efficiency performance
of conventional and Islamic banks in Malaysian banking industry over the period of 2008 to 2014. This study
employs concentration ratio and Herfindahl-Hirschman Index to measure the market concentration while
H-statistics value computed by Panzar-Rosse method serves as the indicator of the market competition.
Last but not least, the Data Envelopment Analysis is used to assess the efficiency performance of
Malaysian banks. The results ofmarket concentration show conventional banks are more concentrated and
the H-statistics results suggest Malaysian banks are operating under monopolistic competition.
Interestingly, the efficiency results indicate the foreign banks are more efficient than its counterpart under
conventional banking; vice versa, the domestic banks are more efficient in the Islamic banking system. |
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