A Comparative Analysis on Islamic Bank Performance and Efficiency Risk: Pre and Post IFSA 2013
DOI:
https://doi.org/10.21834/e-bpj.v9iSI19.5761Keywords:
Financial Institutions, Regulation, IFSA, PerformanceAbstract
It is recognized that performance of the banking industry has an impact to the economic growth of a developed economies. The performance of the bank may impact the growth of the economy, as profits may shape the customers’ decision on investments and savings. Regulation affecting the design of banking governance structure; hence, it plays a vital role in determination of banking industry performance. IFSA 2013 was established to promote financial stability and compliance to Shariah and further strengthen the regulation of Islamic financial institutions. This paper aims to examine whether IFSA 2013, bank’s risk-taking behavior and efficiency will enhance or impede performance of Islamic banks in Malaysia.
References
Demirgüç-Kunt, A, Laeven, L. & Levine, R. (2004). Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation. Journal of Money, Credit and Banking 36, 593-622. DOI: https://doi.org/10.1353/mcb.2004.0045
Barth, Caprio & Levine (2008). Bank Regulations are changing: For Better or Worse?” Comparative Economic Studies, December, 50(4), 537-563. DOI: https://doi.org/10.1057/ces.2008.33
Barth, Caprio & Levine (2004). Bank Regulation and Supervision: What Works Best? Journal of Financial Intermediation 13, 205–248. DOI: https://doi.org/10.1016/j.jfi.2003.06.002
Pasiouras, F. (2008). International Evidence on the Impact of Regulations and Supervision on Banks’ Technical Efficiency: An Application of Two-Stage Data Envelopment Analysis. Review of Quantitative Finance and Accounting 30, 187- 223. DOI: https://doi.org/10.1007/s11156-007-0046-7
Reinhart, Carmen M. & Kenneth S. Rogoff (2008). This Time is Different: A Panoramic View of Eight Centuries of Financial Crises. NBER Working Paper 13882, March 2008a. DOI: https://doi.org/10.3386/w13882
Brunnermeier, M. K. & L. H. Pedersen (2009). "Market Liquidity and Funding Liquidity", Review of Financial Studies, 22, 2201-2238. DOI: https://doi.org/10.1093/rfs/hhn098
Rajan and Zingales (1995). "What Do We Know about Capital Structure? Some Evidence from International Data”, The Journal of Finance, Vol. 50, No. 5., pp. 1421-1460. DOI: https://doi.org/10.1111/j.1540-6261.1995.tb05184.x
Laeven, L. & Levine, R. (2009). “Bank Governance, Regulation and Risk Taking”, Journal of Financial Economics, 93, 259–275. DOI: https://doi.org/10.1016/j.jfineco.2008.09.003
Kroszner and Rajan (1994). “Is Glass-Steagall Act Justified?”, The American Economic Review, Vol. 84, No. 4 (Sep., 1994), pp. 810-832.
Gande et al. (1997) “Bank underwriting of debt securities: modern evidence. Review of Financial Studies 10, 1175}1202. DOI: https://doi.org/10.1093/rfs/10.4.1175
Berger et al. (1993). “The Efficiency of Financial Institutions: A Review and Preview of Research Past, Present and Future”, Journal of Banking and Finance, Volume 17, Issues 2-3, April 1993, Pages 221-249. DOI: https://doi.org/10.1016/0378-4266(93)90030-H
Berger AN and DB Humphrey (1997). “Efficiency of Financial Institutions: International Survey and Directions for Future Research.” EJOR 98(2): 175-212. DOI: https://doi.org/10.1016/S0377-2217(96)00342-6
Casu B and P Molyneux (2003). “A Comparative Study of Efficiency in European Banking.” Appl Econ 35(17): 1865-1876. DOI: https://doi.org/10.1080/0003684032000158109
Kwan and Eisenbeis (1997). “Bank Risk, Capitalization, and Operating Efficiency”, Journal of Financial Services Research, vol. 12, issue 2, 117-131 DOI: https://doi.org/10.1023/A:1007970618648
Altunbas et al. (2007). “Examining the relationships between capital, risk and efficiency in European banking”, European Financial Management, 13(1), 49–70 DOI: https://doi.org/10.1111/j.1468-036X.2006.00285.x
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Balkis Haris, Badrul Hisham Abd Rahman, Zahariah Sahudin, Ismah Osman
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
