صورة الغلاف

Efficiency of Banks in Malaysia: a Super Efficiency Approach

The stability of the economic system of a country very much depends on its banking industry. Data Envelopment Analysis (DEA) has been applied widely for measuring efficiency of banks. Limited studies, however, have employed the radial andnon-radial DEA models to evaluate efficiency of banks without...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلفون الرئيسيون: Mat Kasim, Maznah, Ramli, Razamin, Baten, Md Azizul, Mohd Jamil, Jastini, Taleb, Mushtaq
التنسيق: مقال
اللغة:English
منشور في: Kauno technologijos universitetas (KTU) 2019
الموضوعات:
QA Mathematics
الوصول للمادة أونلاين:https://repo.uum.edu.my/id/eprint/31023/1/IEEE%2030%2004%202019%20442-450.pdf
http://dx.doi.org/10.5755/j01.ee.30.4.14350
https://repo.uum.edu.my/id/eprint/31023/
https://inzeko.ktu.lt/index.php/EE/article/view/14350
http://dx.doi.org/10.5755/j01.ee.30.4.14350
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id my.uum.repo.31023
record_format eprints
spelling my.uum.repo.310232024-12-16T10:22:20Z https://repo.uum.edu.my/id/eprint/31023/ Efficiency of Banks in Malaysia: a Super Efficiency Approach Mat Kasim, Maznah Ramli, Razamin Baten, Md Azizul Mohd Jamil, Jastini Taleb, Mushtaq QA Mathematics The stability of the economic system of a country very much depends on its banking industry. Data Envelopment Analysis (DEA) has been applied widely for measuring efficiency of banks. Limited studies, however, have employed the radial andnon-radial DEA models to evaluate efficiency of banks without considering the ranking of the fully efficient banks since those banks have the same efficiency score. Considering the weakness of the radial and non-radial DEA, this paper aims to calculate the banks efficiency of nine commercial banks in Malaysia from 2004 to 2013 by adopting the two-stage of super efficiency slack-based measure (SE-SBM) model. This model can discriminate between the efficient banks and recalculate their efficiency scores. Then, the selected banks were able to be ranked according to their final efficiency scores. Moreover, comparative analyses of the efficiency of the banks and the year-wise efficiency of the selected banks were also conducted. The methodology consists of two stages. In the first stage the SBM model is run to classify efficient and inefficient banks. In the second stage the super efficiency model is run to rank the efficient banks obtained from the first stage by calculating their super efficiency scores. Our empirical results show that: (1) the efficiency status of the banks fluctuated over the examined period, the high number of the efficient banks is achieved in the years 2006 and 2008, while the year 2012 has the lowest number of the efficient banks. (2) the ranking of the banks fluctuated in the studied period. (3) most of the banks are inefficient in terms of their average efficiency scores. This paper has two limitations. First, the paper did not integrate undesirable output, despite it deals with non-interest income. Second, performance evaluation of Malaysian commercial banks was only compared among the Malaysian banks Kauno technologijos universitetas (KTU) 2019 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/31023/1/IEEE%2030%2004%202019%20442-450.pdf Mat Kasim, Maznah and Ramli, Razamin and Baten, Md Azizul and Mohd Jamil, Jastini and Taleb, Mushtaq (2019) Efficiency of Banks in Malaysia: a Super Efficiency Approach. Inzinerine Ekonomika-Engineering Economics, 30 (4). pp. 442-450. ISSN 1392-2785 https://inzeko.ktu.lt/index.php/EE/article/view/14350 http://dx.doi.org/10.5755/j01.ee.30.4.14350 http://dx.doi.org/10.5755/j01.ee.30.4.14350
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic QA Mathematics
spellingShingle QA Mathematics
Mat Kasim, Maznah
Ramli, Razamin
Baten, Md Azizul
Mohd Jamil, Jastini
Taleb, Mushtaq
Efficiency of Banks in Malaysia: a Super Efficiency Approach
description The stability of the economic system of a country very much depends on its banking industry. Data Envelopment Analysis (DEA) has been applied widely for measuring efficiency of banks. Limited studies, however, have employed the radial andnon-radial DEA models to evaluate efficiency of banks without considering the ranking of the fully efficient banks since those banks have the same efficiency score. Considering the weakness of the radial and non-radial DEA, this paper aims to calculate the banks efficiency of nine commercial banks in Malaysia from 2004 to 2013 by adopting the two-stage of super efficiency slack-based measure (SE-SBM) model. This model can discriminate between the efficient banks and recalculate their efficiency scores. Then, the selected banks were able to be ranked according to their final efficiency scores. Moreover, comparative analyses of the efficiency of the banks and the year-wise efficiency of the selected banks were also conducted. The methodology consists of two stages. In the first stage the SBM model is run to classify efficient and inefficient banks. In the second stage the super efficiency model is run to rank the efficient banks obtained from the first stage by calculating their super efficiency scores. Our empirical results show that: (1) the efficiency status of the banks fluctuated over the examined period, the high number of the efficient banks is achieved in the years 2006 and 2008, while the year 2012 has the lowest number of the efficient banks. (2) the ranking of the banks fluctuated in the studied period. (3) most of the banks are inefficient in terms of their average efficiency scores. This paper has two limitations. First, the paper did not integrate undesirable output, despite it deals with non-interest income. Second, performance evaluation of Malaysian commercial banks was only compared among the Malaysian banks
format Article
author Mat Kasim, Maznah
Ramli, Razamin
Baten, Md Azizul
Mohd Jamil, Jastini
Taleb, Mushtaq
author_facet Mat Kasim, Maznah
Ramli, Razamin
Baten, Md Azizul
Mohd Jamil, Jastini
Taleb, Mushtaq
author_sort Mat Kasim, Maznah
title Efficiency of Banks in Malaysia: a Super Efficiency Approach
title_short Efficiency of Banks in Malaysia: a Super Efficiency Approach
title_full Efficiency of Banks in Malaysia: a Super Efficiency Approach
title_fullStr Efficiency of Banks in Malaysia: a Super Efficiency Approach
title_full_unstemmed Efficiency of Banks in Malaysia: a Super Efficiency Approach
title_sort efficiency of banks in malaysia: a super efficiency approach
publisher Kauno technologijos universitetas (KTU)
publishDate 2019
url https://repo.uum.edu.my/id/eprint/31023/1/IEEE%2030%2004%202019%20442-450.pdf
http://dx.doi.org/10.5755/j01.ee.30.4.14350
https://repo.uum.edu.my/id/eprint/31023/
https://inzeko.ktu.lt/index.php/EE/article/view/14350
http://dx.doi.org/10.5755/j01.ee.30.4.14350
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score 13.251813

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