EFFICIENCY AND STABILITY OF ISLAMIC BANKING IN ASEAN: DEA WINDOW ANALYSIS

Authors

  • Nailah Nailah SEBI School of Islamic Economics, Depok.
  • Aam Slamet Rusydiana Sharia Economic Applied Research & Training (SMART) Indonesia.

DOI:

https://doi.org/10.30993/tifbr.v14i1.211

Keywords:

Islamic Banking, ASEAN, DEA Window Analysis

Abstract

The study aims to analyze stability and efficiency of the Islamic banking industry in the Association of Southeast Asian Nations (ASEAN) region. Islamic banks are currently in the spotlight for their role in Islamic financial growth across South East Asia, especially in Indonesia. The efficiency and stability of Islamic banking is one factor in measuring the readiness of Islamic banks within the ASEAN Economic Community (AEC) framework. This research examines 12 Islamic banks in Indonesia, Malaysia, Brunei Darussalam and Thailand during the 2013-2018 period. The analysis was conducted with a non-parametric approach, namely DEA Window Analysis (DEWA). The results show that Malaysia has the highest average efficiency in four different periods with 96% and Indonesia has an average efficiency of 67%. Thailand with an average efficiency that is relatively stable at 100% and Brunei Darussalam's average efficiency is 55%, lower compared to other countries. For Islamic banks with good stability conditions are Bank Islam Malaysia Berhad and Islamic Bank of Thailand. Meanwhile, Islamic banks with unstable condition are Bank Mega Syariah and Bank Islam Brunei Darussalam. Overall, Islamic banks in ASEAN have achieved stable performance, even though most of them are still inefficient.

Author Biography

Nailah Nailah, SEBI School of Islamic Economics, Depok.

Department of Sharia Accounting, SEBI School of Islamic Economics

EFFICIENCY AND STABILITY OF ISLAMIC BANKING IN ASEAN USING DEA WINDOW ANALYSIS

Downloads

Additional Files

Published

2020-12-12

Issue

Section

Articles