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 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

Intellectual Capital of Malaysian Banks

The importance of intellectual capital has induced drastic movement in conducted of businesses by switching from traditional labour to knowledge labour whereby to compete with the incumbents and the newcomers. On this note, services sector especially banking industry plays a vital role in the development of economies that affected overall in gross domestic product compared to the other production sectors thus intellectual capital is important to the growth of banking sector in a nation. Therefore, the general objective of this study is to investigate the intellectual capital of Malaysian banks over the study period of 2007 to 2016 by employing Model of Value Added Intellectual Coefficient (VAIC). In view of the above scenarios, the specific objectives of this study is to investigate the sources of intellectual capital namely human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE) of the Malaysian banking institution. The results of this study show that human capital efficiency is the most influential components in the intellectual capital among Malaysian banks. Thus, the findings of this study recommend on the bank’s management and policy makers to increase on the efforts to encourage the utilizing in human capital which is treated as an effective alternatives in creating bank's value as well as consider the human capital as a single resources of the intellectual capital in improving on the efficiency performance of the banks

Market Concentration, Competition And Efficiency Of Malaysian Banks : A Comparison Between Conventional And Islamic Ranks

The aim of this study is to examine the market concentration, competition and the efficiency performance of conventional and Islamic banks in Malaysian banking industry over the period of2008 to 2014. Bank refurm particularly in the late 1990's has changed the structure of Malaysian banking industry profoundly and triggered the competitiveness among the banks. This study employs concentration ratio (CR) and Herfmdahl-Hirschman Index (HHI) to measure the market concentration as the indicator of the market structure of Malaysian banks while H-statistics value generated by Panzar-Rosse method serves as the indicator as the indicator of the market competition Last but not least, this study utilizes Data Envelopment Analysis to assess the efficiency performance of Malaysian banks. The results of market concentration show that conventional banks are more concentrated. Next, the Hstatistics index indicates that conventional and Islamic banks in Malaysia are operating under monopolistic. Finally, the efficiency results show foreign banks in Malaysia are efficient under conventional banks while domestic banks are more efficient compare to foreign under Islamic. The results of this study imply that Malaysian banking industry are monopolistic and domestic banks are efficient under Islamic and foreign under conventional

Market Structure, Efficiency and Competition of QISMUT Banking Industry

The aim of this study is to assess the market structure, efficiency, competition as well as examine the relationship between efficiency and competition in QISMUT over the period of 2006 to 2016. Qatar, Indonesia, Saudi Arabia, Malaysia, United Arab Emirates and Turkey banking industry are the major player in Islamic banking industry. Concentration ratio (CR) and Herfindahl-Hirshman Index (HHI) are used to assess the market structure meanwhile Data Envelopment Analysis (DEA) and Lerner Index (LI) for efficiency and competition. In order to examine the relationship of efficiency and competition, regression of three models (conventional, Islamic and all banks) of panel data analysis required. The results of market structure indicate that conventional banking industry are more concentrated in QISMUT compare to Islamic banking industry. However, the results found Islamic banks are more efficient than the conventional banks counterpart. The indicator of market power, conventional bank higher as compare to Islamic banks. Interestingly, the results of nexus hypothesis for competition-efficiency and efficiency-competition are positive. This imply higher competition cause higher efficiency and vice versa

Market Structure and Efficiency of QISMUT Banking Sector

The aim of this study is to assess the market structure and efficiency of QISMUT (Qatar, Indonesia, Saudi Arabia, Malaysia, United Arab Emirates and Turkey) banking market over the study period of 2006 to 2016. Concentration ratio and Herfindahl-Hirshman Index are used to measure market structure while efficiency is measured using Data Envelopment Analysis (DEA). The results show conventional banks in QISMUT are more concentrated than its Counterpart, the Islamic banks. However, Islamic banks are found to be more efficient than the conventional banks. Keywords: Market Structure, Efficiency, QISMUT, Banking Market