Comparing the Efficiency of Islamic Banks in Malaysia and Indonesia

Deskripsi

This study measures and compares the efficiency of Islamic banks in Malaysia and Indonesia using Data Envelopment Analysis (DEA), Which is a non-parametric and deterministic methodology for determining the relative efficiency. The intermediation approach will be applied. This study identifies the level of inefficiency of the inputs and outputs. The results show that the Islamic banking in Indonesia is more efficient than the one in Malaysia in all three measurements; the scale, and the overall efficiency. Technically, financing is one of the sources of inefficiency in Malaysia, while human resources is one of the sources of inefficiency in Indonesia..Printed Journal