MALAYSIAN ISLAMIC BANKS’ EFFICIENCY: AN INTRA-BANK COMPARATIVE ANALYSIS OF ISLAMIC WINDOWS AND FULL-FLEDGED SUBSIDIARIES

This paper aims to fill an apparent dearth of empirical studies that compare the efficiency of Islamic banks in Malaysia during their operation as Islamic windows and later transformation to full-fledged Islamic banks. Data obtained from the annual financial reports of the sampled banks is analyzed using the Data Envelopment Analysis (DEA) via DEAP 2.1 software to assess both the technical and scale efficiency of the banks under sample. Results obtained indicate that the banks have improved over the years in terms of both scale and technical efficiency although the former takes prominence. In general, the banks were found to be more efficient as Islamic windows compared to being full-fledged subsidiaries. This augurs well for the current disposition where, as per the Islamic Financial Service Act 2013, Islamic banks in Malaysia may now operate as full-fledged banks from their hitherto Islamic banking window status.Keywords: Scale Efficiency; Technical Efficiency; Islamic Window; Full-Fledged Banks.

Performance of Bank Units : A synthetic review

Banking is now become a part of every individual's daily routine activity. Every individual is now exposed with banks and its services. Now a days, Pradhan mantry Jan Dhan Yojna i.e. PMJDY is forcing every citizens of India to have an account with banks. Hence role of banking industry in India became very crucial and challenging. Banks are attracting the customers with new products and ideas.Targets are assigned to every branch for the better performance. An impact of this, role of bank has become more responsible towards society. “Survival of the fittest” is now applicable to banks also. They have to perform continuously for survival. There are various techniques used for measuring the performance of banking units. In this particular paper we reviewed about the study already done on interbank & intra bank performance. This paper reviewed about DEA i.e. Data Envelopment Analysis and CAMEL approaches.

Engineering Banking Applications

The banking industry has undergone a major change in recent years. Global competition has forced the industry to be more agile and customer focused in all its services. Banks can no more function in isolation but have to operate cutting across physical boundaries. Interoperability, scalability, maintainability, and security are the upcoming challenges for the banking industry. This has enthused software architects to develop suitable software development paradigms that can seamlessly integrate business functions across organizational boundaries. This chapter envisages a hybrid approach that uses the service-oriented paradigm along with the software agent technology as a possible solution to the growing issues of inter-and intra- bank operations.