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Impact of structural changes on bank competition in dual banking industry

The banking industry in Malaysia has undergone a change in its market structure, especially in terms of competition due to several factors such as the implementation of the merger program, restructuring of the Islamic banking operations, liberalization and technological advancement. Therefore, t...

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Main Authors: Nafisah Mohammed,, Junaina Muhammad,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/20483/1/30075-102232-1-PB.pdf
http://journalarticle.ukm.my/20483/
https://ejournal.ukm.my/pengurusan/issue/view/1154
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spelling my-ukm.journal.204832022-11-11T07:02:57Z http://journalarticle.ukm.my/20483/ Impact of structural changes on bank competition in dual banking industry Nafisah Mohammed, Junaina Muhammad, The banking industry in Malaysia has undergone a change in its market structure, especially in terms of competition due to several factors such as the implementation of the merger program, restructuring of the Islamic banking operations, liberalization and technological advancement. Therefore, this study is conducted to measure the changes in the degree of competition in the Malaysian dual banking due to structural changes occurring in the industry. The Panzar-Rosse (PR) method has been used to measure the degree of competition in the Malaysian dual banking market for the period 1997-2016. Present study uses static panel data estimation to estimate the developed models. The value of H-statistics indicates that Islamic and conventional banks operate in monopolistic competition market structure. The findings show that structural changes have increased the level of competition in the Malaysian banking industry. The results of the study show that policy changes made by Bank Negara Malaysia have improved the level of competition in the Islamic and conventional banking markets. Knowledge of competitive issues is crucial so that policy makers may formulate new policies for the banking industry that suit the current market structure. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/20483/1/30075-102232-1-PB.pdf Nafisah Mohammed, and Junaina Muhammad, (2018) Impact of structural changes on bank competition in dual banking industry. Jurnal Pengurusan, 54 . pp. 73-86. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1154
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The banking industry in Malaysia has undergone a change in its market structure, especially in terms of competition due to several factors such as the implementation of the merger program, restructuring of the Islamic banking operations, liberalization and technological advancement. Therefore, this study is conducted to measure the changes in the degree of competition in the Malaysian dual banking due to structural changes occurring in the industry. The Panzar-Rosse (PR) method has been used to measure the degree of competition in the Malaysian dual banking market for the period 1997-2016. Present study uses static panel data estimation to estimate the developed models. The value of H-statistics indicates that Islamic and conventional banks operate in monopolistic competition market structure. The findings show that structural changes have increased the level of competition in the Malaysian banking industry. The results of the study show that policy changes made by Bank Negara Malaysia have improved the level of competition in the Islamic and conventional banking markets. Knowledge of competitive issues is crucial so that policy makers may formulate new policies for the banking industry that suit the current market structure.
format Article
author Nafisah Mohammed,
Junaina Muhammad,
spellingShingle Nafisah Mohammed,
Junaina Muhammad,
Impact of structural changes on bank competition in dual banking industry
author_facet Nafisah Mohammed,
Junaina Muhammad,
author_sort Nafisah Mohammed,
title Impact of structural changes on bank competition in dual banking industry
title_short Impact of structural changes on bank competition in dual banking industry
title_full Impact of structural changes on bank competition in dual banking industry
title_fullStr Impact of structural changes on bank competition in dual banking industry
title_full_unstemmed Impact of structural changes on bank competition in dual banking industry
title_sort impact of structural changes on bank competition in dual banking industry
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2018
url http://journalarticle.ukm.my/20483/1/30075-102232-1-PB.pdf
http://journalarticle.ukm.my/20483/
https://ejournal.ukm.my/pengurusan/issue/view/1154
_version_ 1751537468103983104
score 13.211869

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