Financial distress and the Malaysian dual baking system: A dynamic slacks approach |
| |
| Institution: | 1. COPPEAD Graduate Business School, Federal University of Rio de Janeiro, Rua Paschoal Lemme, 355, 21949-900 Rio de Janeiro, Brazil;2. University of Malaya, Department of Applied Statistics, Faculty of Economics and Administration, 50603 Kuala Lumpur, Malaysia;3. Instituto Superior de Economia e Gestão, University of Lisbon, Rua Miguel Lupi, 20, 1249-078 Lisbon, Portugal;1. School of Finance, Nankai University, 38 Tongyan Road, Jinnan District, Tianjin 300350, China;2. Department of Finance, National Kaohsiung First University of Science and Technology, Kaohsiung, Taiwan;3. Risk and Insurance Research Center, College of Commerce, National Chengchi University, Taiwan;4. Department of Statistics and Actuarial Science, University of Waterloo, 200 University Avenue West, Waterloo N2L 3G1, ON, Canada;1. Baylor University, United States;2. Loyola University Maryland, United States;3. KAIST, Republic of Korea;1. Department of Economics, University of Otago (New Zealand) and University of Newcastle (Australia), PO Box 56, Dunedin 9054, New Zealand;2. Department of Economics, American University in Cairo, 1016 Abdul Latif Jameel Hall, AUC Avenue, PO Box 74, New Cairo 11835, Egypt;3. Department of Economics, Kyung Hee University, Hoegi-dong, Dongdaemun-ku, Seoul 130-701, Republic of Korea;1. University of Sussex, United Kingdom;2. Lancaster University Management School, United Kingdom;1. Warrington College of Business Administration, University of Florida, Gainesville, FL, 32611, United States;2. Blackthorne Group, Tallahassee, FL, United States |
| |
| Abstract: | This paper presents an efficiency assessment of the Malaysian dual banking system using the Dynamic Slacks Based Model (DSBM) in order to assess the evolution of Malaysian Banks’ potential input–saving/output–increase from 2009 to 2013. More precisely, DSBM is used first in a two-stage approach to assess the relative efficiency of Malaysian Islamic and conventional banks by emulating the CAMEL rating systems. Then, in the second stage, Monte Carlo Markov Chain (MCMC) methods applied to generalized linear mixed models (GLMM) are combined with DSBM results as part of an attempt to produce a model for banking performance assessment with effective predictive ability. Results indicate higher inefficiency levels and slacks in Islamic banks when compared to conventional ones. Furthermore, when the scope of analysis is the group of Malaysian Islamic banks, the efficiency levels of foreign banks are lower compared to their national counterparts, suggesting regulatory and cultural barriers. Policy implications are derived. |
| |
| Keywords: | Dual banking system Malaysia DSBM Two-stage MCMC GLMM |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
