scholarly journals COMPARING THE INTERTEMPORAL EFFICIENCY OF ISLAMIC BANKS IN INDONESIA AND MALAYSIA

2020 ◽  
Vol 6 (4) ◽  
Author(s):  
Lina Nugraha Rani ◽  
Salina Kassim
Keyword(s):  
Technical Efficiency ◽  
Global Financial Crisis ◽  
Optimal Level ◽  
Scale Efficiency ◽  
Islamic Banks ◽  
Using Data ◽  
The Stability ◽  
The Global Financial Crisis ◽  
Intertemporal Efficiency ◽  
Stability Score

This study aims to measure and compare the intertemporal efficiency of Islamicbanks in Indonesia and Malaysia using data envelopment analysis (DEA) togetherwith window (intertemporal) analysis for the period 2012–2018 and applying anintermediation approach. Window analysis is used to indicate the stability of efficiencyover the study period. The findings show that the intertemporal technical efficiency(TE) of Islamic banks in Indonesia was 77.4% with stability score of 0.034, which wassignificantly more efficient and more stable than Malaysian banks at 75.1% withstability score of 0.169. Moreover, the the intertemporal pure technical efficiency(PTE) of Islamic banks in Indonesia was 91.7% with stability score 0.020, which wasalso significantly more efficient and more stable than Malaysian banks at 88.0% PTEand stability score of 0.161. In contrast, the intertemporal scale efficiency (SE) ofIslamic banks in Indonesia was 84.5%, slightly lower than that of Malaysian banks at85.3% but not significantly different. PTE improvement has contributed to TEimprovement, while SE has not reached an optimal level. Comparison to previousresults also showed that since the global financial crisis the PTEs of Islamic banks inIndonesia and Malaysia have improved while SEs have worsened. Therefore, effortsto improve SE by expanding the size of Islamic banks to reach optimum economiesof scale are urgently needed.

scholarly journals Did Global Financial Crisis Impact the Islamic Banking Efficiencies? Evidence from Malaysian Islamic Banks

2018 ◽  
Vol 6 (2) ◽  
pp. 075
Author(s):  
Abdus Samad
Keyword(s):  
Financial Crisis ◽  
Technical Efficiency ◽  
Global Financial Crisis ◽  
Islamic Banking ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Significant Difference ◽  
Loan Financing ◽  
The Global Financial Crisis ◽  
Non Parametric

First, this paper investigated the loan and deposit efficiencies of Malaysian Islamic banks during 2008-2013 applying the non-parametric technique, Data Envelopment Analysis (DEA), and found that the average technical efficiency (TE) of loan financing was 83%, 88%, 87%, 95%, 100%, and 94% and the average technical efficiency for deposit mobilizations was 87%, 94%, 94%, 96%, 92%, and 96%. Only four banks in 2008, two bank in 2009, three banks in 2010, two banks in 2011-2013 are both technically and scale efficient in loan production. On the other hand, only four banks in 2008 and 2009, five banks in 2010 and 2011, three banks in 2012, and five banks in 2013 are both technical and scale efficient in deposit mobilizations. Second, the paper compares the efficiencies of Islamic banks between the global financial crisis (GFC) and the post global financial crisis (PGFC) in determining whether the efficiencies of banks between the GFCP and PGFCP are stable. Both parametric and non-parametric tests found no significant difference in the efficiencies between the two periods suggesting that the efficiencies of the Malaysian Islamic banks were stable.

scholarly journals Factors influencing efficiency of Islamic banks in GCC region: Evidence from Arab Spring period

2017 ◽  
Vol 14 (3) ◽  
pp. 345-353 ◽  
Author(s):  
Majed Alharthi
Keyword(s):  
Technical Efficiency ◽  
Arab Spring ◽  
Economies Of Scale ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Generalized Method Of Moments ◽  
Generalized Least Squares ◽  
Scale Efficiency ◽  
Islamic Banks ◽  
Gcc Countries

The main purpose of this research is to estimate efficiency and its factors of Islamic banks in GCC countries during the period 2005-2014. In this study, efficiency is measured using data envelopment analysis (DEA), which is divided into technical efficiency (TE), pure technical efficiency (PTE), and scale efficiency (SE). The statistical methods to find the determinants are generalized least squares (GLS), generalized method of moments (GMM) and Tobit regressions. The DEA measures show that the highest efficiency found to be in Islamic banks in Kuwait. The statistical results demonstrate that size of banks is highly important to efficiency as larger Islamic banks could reduce their costs (based on economies of scale approach) and they could provide more services (more outputs) than smaller banks. Focusing on capitalisation, the results suggest that better capitalised banks have better efficiency. The lending services increase the efficiency significantly, which encourage Islamic banks in GCC region to focus more in providing loans. Furthermore, achieving profits is significantly and positively support the efficiency of Islamic banks. In contrast, foreign and local ownerships decreased efficiencies significantly. Additionally, banks in lower rates of economic growth operated more efficiently. Finally, the global financial crisis and Arab spring impacted the efficiency of Islamic banks in GCC countries dangerously. The strength point is that the efficiency of Islamic banks in GCC countries has not been affected by inflation (based on insignificant correlation between efficiency scores and inflation). These results actually help bankers and policy maker to evaluate the financial performance in banking sector. Moreover, identifying the positive and negative determinants allow banks to apply strategies to enhance efficiency.

scholarly journals vulnerability of islamic banking

2017 ◽  
Vol 5 (2) ◽  
pp. 094
Author(s):  
Hasan Albanna
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Financial Crisis ◽  
Dynamic Behavior ◽  
Inflation Rate ◽  
Global Financial Crisis ◽  
Islamic Banks ◽  
Conventional Banks ◽  
The Stability ◽  
The Global Financial Crisis

The recent global financial crisis has renewed the focus on the resistance of Islamic banks in order to confront the crisis. While several empirical studies show that Islamic banks have no resist from the crisis. thus, Islamic banks run their business side by side with their counterpart and play the game under the same umbrella and the rules of game. In case of Indonesia, which implement dual banking system, Islamic banks have potential to be effected by the variables of conventional banks. Which mean, this condition led the Islamic banks have the vulnerable spot in economic life. This paper aim to examine the stability of Islamic banks and to discern dynamic behavior of Islamic banks to the macroeconomic variables such as GDP, inflation rate, exchange rate and interest rate. the measure of stability of Islamic banks formulated as z-score. Then, We use VAR/VECM analysis in order to see the dynamic behavior and the vulnerability of Islamic banks. the paper found several findings, first, during the global financial crisis, Islamic banks more stable than the conventional banks, while after the global financial crisis conventional banks tend to be more stable than Islamic banks. Second, From the IRF test display that Islamic banks react sensitively to the shock of interest rate. however, Islamic banks prohibit the practice of interest rate. even though, in practical reason, Islamic bank use interest rate as benchmarking to determine the price. This condition put the Islamic Banks in vulnerable condition. Third, the FEVD test showed that the stability of Islamic banks mostly contribute by its own stability then followed by GDP, interest rate, exchange rate and Inflation. At the seventh period the stability of Islamic banks mostly contribute by its stability then followed by Inflation rate, GDP, exchange rate and interest rate.

ESTIMATION OF TECHNICAL, SPECIALIZED AND ECONOMIC EFFICIENCY OF CULTIVATED POTATO VARIETIES USING DATA ENVELOPE ANALYSIS METHOD (DEA) IN IRAQ FOR SPRING LUG 2018

2020 ◽  
pp. 119-131
Keyword(s):  
Technical Efficiency ◽  
Economic Efficiency ◽  
Potato Crop ◽  
Economic Status ◽  
Analysis Method ◽  
Envelope Analysis ◽  
Variable Capacity ◽  
Data Envelope Analysis ◽  
Using Data ◽  
The Stability

Research highlights the importance of potato crop, which occupies a prominent food and economic status in food security besides rice, wheat and corn at the local and global level. Despite the expansion of the cultivation of potato crop in Iraq in general and Ameriyah district in particular However, potato productivity remains substandard, this may be due to a lack of knowledge of the most efficient varieties and not to use productive resources at the levels at which technical, specialized and economic efficiency is achieved. Therefore, the aim of the research is to determine the technical, specialized and economic efficiency according to the cultivated seed category. The data envelope analysis (DEA) method was used to estimate technical, specialized and economic efficiency, assuming constant and variable capacity returns. As a result of the study, the Safrana variety achieved the highest average technical efficiency according to the stability of the yield and capacity efficiency in addition to achieving the highest average specialized and economic efficiency, The Lapadia variety achieved the highest average technical efficiency, assuming that capacity returns have changed. Therefore, we recommend the adoption of items that achieve higher efficiency and the need to redistribute the elements of production better and Achieving the optimum levels at which technical, specialized and economic efficiency is achieved and saving what has been wasted.

The IMF and the Politics of Austerity in the Wake of the Global Financial Crisis

2018 ◽  
Author(s):  
Ben Clift
Keyword(s):  
Global Financial Crisis ◽  
Full Employment ◽  
Real Economy ◽  
Economic Stability ◽  
Public Power ◽  
The Great Recession ◽  
Regulatory Interventions ◽  
The Stability ◽  
The Global Financial Crisis ◽  
The Imf

The IMF uses crisis-defining economic ideas, and crisis legacy-defining ideas, to construct interpretations of economic crises in ways which prioritize particular policy or institutional responses, and rule out or marginalize others. The post-crash IMF enjoyed scope to shift the boundaries of ‘legitimate’ policy, involving heightened appreciation of ‘non-linear’ threats from losses of confidence, prolonged weak demand, and financial system fragilities and contagion. The policy corollaries of this Fund rethink were that economic stability has to be actively pursued through a wider range of policy and regulatory interventions by governments, central banks, the IMF, and other forms of authority and public power. In the context of the Great Recession, the Fund no longer considered it safe to assume an inherent tendency on the part of unfettered market forces in finance and the real economy to deliver the stability and full employment at the heart of its mandate.

scholarly journals The Measurement of Innovation Efficiency of Chinese High-tech Industry Using Data Envelopment Analysis

2015 ◽  
Vol 65 (s2) ◽  
pp. 101-113 ◽  
Author(s):  
Ling Jiang ◽  
Yunyu Jiang ◽  
Zhijun Wu ◽  
Dongsheng Liao ◽  
Runfa Xu
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Environmental Variables ◽  
Scale Efficiency ◽  
High Tech ◽  
Data Envelopment ◽  
High Tech Industry ◽  
Economic Competitiveness ◽  
Development Level ◽  
Using Data

In the era of knowledge economy, a country’s economic competitiveness depends largely on the development level of high-tech industry. This paper evaluates the efficiency of China’s high-tech industry in 31 provinces in 2012 with data envelopment analysis. The empirical results are summarized as following. Firstly, when the effects of exogenous environmental variables are not controlled, the comprehensive technical efficiency of 31 provinces will be overestimated, the pure technical efficiency will be underestimated, and the scale efficiency value will be overestimated. Secondly, after eliminating the environmental impact, the comprehensive technical efficiency of 31 provinces with the average of 0.395 is rather low, due to the low scale efficiency.

scholarly journals Deposit flows and structure in Serbia

Bankarstvo ◽  
2020 ◽  
Vol 49 (4) ◽  
pp. 68-87
Author(s):  
Milena Lazić ◽  
Ksenija Zorčić
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Banking Regulation ◽  
The Stability ◽  
The Global Financial Crisis ◽  
Deposit Guarantee Schemes

Having drawn attention to the existing banking regulation issues, the Global Financial Crisis also raised awareness of the importance of depositors' confidence for the stability of the financial system, and brought the role and significance of the deposit guarantee schemes to the fore. Serbian economy started experiencing its effects in Q4 2008, in parallel with the global spreading of the crisis. This paper focuses on the fluctuations in deposit levels and structure in the Serbian banking system, between 2008 and 2019. It also aims to underscore the importance and development perspectives of the Serbian deposit guarantee scheme.

scholarly journals Risk management of Islamic banks: A search for empirical evidences

2017 ◽  
Vol 14 (2) ◽  
pp. 8-16
Author(s):  
Sayed M. Fadel ◽  
Jasim Al-Ajmi
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Management Practices ◽  
Global Financial Crisis ◽  
Risk Mitigation ◽  
Balance Sheet ◽  
Islamic Banks ◽  
Risk Levels ◽  
Management Techniques ◽  
The Global Financial Crisis

The objectives of this study are to determine 1) the effect of global economic and financial crisis on risk management, 2) the severity of different types of risk facing Islamic banks, 3) the risk levels of Islamic financial modes, 4) risk assessment techniques, and 5) risk management techniques. The structure of the balance sheet, the nature of Islamic finance instruments and funding sources have a great impact on the level of risk exposure of banks and the instruments. Credit risk is found to be the most serious risk, followed by liquidity risk, market risk and operational risk, in descending order of importance. As for the riskiness of Islamic financing modes, mudarabah is perceived to be the riskiest, followed by musharakah, while murabahah ranked as the least risky mode. Moreover, Islamic banks are found to use traditional risk management techniques more than sophisticated measurements. They also adopt risk mitigation techniques that are used by conventional banks in preference to techniques that are considered to be unique to Islamic banks. This paper is the first to study the risk management practices of Islamic banks operating in Bahrain. It also provides evidence about these practices after the global financial crisis that affected all countries, including Bahrain.

scholarly journals Evaluating Efficiency of Waqf Institutions: An Intermediation Approach Using Data Envelopment Analysis (DEA)

2019 ◽  
Vol 2 (2) ◽  
pp. 82-89
Author(s):  
Nor Tasik Misbahrudin
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Wealth Distribution ◽  
Scale Efficiency ◽  
Optimum Level ◽  
Data Envelopment ◽  
Input And Output ◽  
Distribution State ◽  
Using Data ◽  
Decision Making Units

Waqf is a voluntary charity that cannot be disposed of and the ownership cannot be transferred once it is declared as waqf assets. Waqf institutions play an important role in helping the development of Muslims ummah through wealth distribution. State Islamic Religious Councils (SIRCs) in Malaysia are the sole trustee that manage and develop waqf assets. Based on selected input and output, the intermediary approach assumes that cash waqf received as output while total expenditure of SIRCs as input. Under this approach SIRCs act as intermediary between waqif (giver) and beneficiaries. Thus, this paper attempts to analyze the efficiency of waqf institutions in Malaysia by using Data Envelopment Analysis (DEA) method under output-orientation using Variable Return to Scale (VRS) assumptions. Four SIRCs were selected as decision making units (DMU) for the period of 2011 to 2015. The result indicates that changes in average technical efficiency for every year is contributed by both pure technical and scale. However, inefficiency of Malaysian waqf institutions is mostly contributed by pure technical efficiency aspects rather than scale. 2012 showed the highest average technical efficiency with 73.9% as most of the institutions operated in optimum level of input to produce output. Thus, the result suggests that both technical and scale efficiency should be improved to achieve the most efficient and productive level of performance in order to fulfill objectives of the institutions as an intermediary between waqif and beneficiaries.

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