Main Article Content
Abstract
The development of Islamic banks in Southeast Asia increases quickly. To measure the Islamic banking performance, Islamic banking efficiency can be adopted as a benchmark. This study aims to measure the efficiency of Islamic banks in Southeast Asia. By applying Stochastic Frontier Analysis, this study utilizes input variable comprising total deposit and operating cost, then output variable consisting to total financing and earning asset whereas all variables mentioned-above are put as independent variable. Moreover, total cost is posited as dependent variable. By observing 28 Islamic banks in Southeast Asia during 2009-2012, this research finds that the level of efficiency Islamic Bank in Malaysia is 94,04%, Brunei Darussalam is 88,59%, and Indonesia is 88,35%. By performing independent t-test, it shows that there has different efficiency between Islamic Bank in Indonesia and Malaysia, and also between Indonesia and Southeast Asia.
Article Details
Copyright (c) 2018 Author
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
References
- Ab-rahim, R, Kadri, N, & Islamil, F. (2013). Efficiency Performence of Malaysian Islamic Bank.Munich Personal RePEc Archive. Paper No. 46238; 1-10
- Ahmad, N.H&Noor, M. (2011). The Determinants Efficiency and Profitability of World Islamic Banks. IPEDR. (3): 228-223
- Aigner, D, Lovell, C.A.K, & Schmidt, P. (1977). Formulation And Estimation of Stochatic Frontier Production Function Models. Journal of Economics, 6 (1): 21-37
- Ayub, M. (2012). Understanding Islamic Finance. Jakarta. Gramedia Pustaka Utama
References
Ab-rahim, R, Kadri, N, & Islamil, F. (2013). Efficiency Performence of Malaysian Islamic Bank.Munich Personal RePEc Archive. Paper No. 46238; 1-10
Ahmad, N.H&Noor, M. (2011). The Determinants Efficiency and Profitability of World Islamic Banks. IPEDR. (3): 228-223
Aigner, D, Lovell, C.A.K, & Schmidt, P. (1977). Formulation And Estimation of Stochatic Frontier Production Function Models. Journal of Economics, 6 (1): 21-37
Ayub, M. (2012). Understanding Islamic Finance. Jakarta. Gramedia Pustaka Utama