Publication:
Do Regulation, Maqasid Shariah And Institutional Parameter Improve Islamic Bank Efficiency?

dc.contributor.authorWan Hakimah Wan Ibrahimen_US
dc.contributor.authorAbdul Ghafar Ismailen_US
dc.date.accessioned2024-05-28T04:24:46Z
dc.date.available2024-05-28T04:24:46Z
dc.date.issued2020
dc.date.submitted28/12/2020
dc.descriptionVolume :6 No:1en_US
dc.description.abstractWe use a new dataset on Islamic banks to link regulation and bank efficiency. Specifically, we examine how bank efficiency is influenced by: (i) bank regulation, (ii) institutional variables, (iii) economic freedom, and (iv) Shariah law parameters. Our hypothesis attempts to prove that better regulation will produce a higher level of efficiency. We will also try to prove that the Shariah law parameter will promote better efficiency among Islamic banks. Data Envelopment Analysis (DEA) is used to measure efficiency, while the panel data method is used to analyse the data. Specifically, our results suggest that a significant relationship exists between bank efficiency and greater restrictions on Islamic bank activities. The results also show that regulatory quality has a positive and significant impact on bank efficiency. The negative coefficient of the economic freedom indicates that Islamic banks have a greater ability to enter into the banking industry and obtain an easy licence, create products and services, and close the business. All would dampen bank efficiency. Overall, our findings support the argument that regulation should be adapted to the risk and size level of the Islamic banks that are being regulated.en_US
dc.identifier.doihttps://doi.org/10.21098/jimf.v6i1.1195
dc.identifier.epage162
dc.identifier.issn2460-6618
dc.identifier.issue1
dc.identifier.spage135
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/5563
dc.identifier.volume6
dc.language.isoen_USen_US
dc.publisherBank Indonesia Instituteen_US
dc.relation.ispartofJournal of Islamic Monetary Economics and Financeen_US
dc.subjectBank regulation, Efficiency, Panel data, DEA, Maqasid shariah index.en_US
dc.titleDo Regulation, Maqasid Shariah And Institutional Parameter Improve Islamic Bank Efficiency?en_US
dc.typeArticleen_US
dspace.entity.typePublication

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