The determinants of the bank regulation and supervision on the efficiency of Islamic Banks in different country’s income level

Mohd Noor, Nor Halida Haziaton and Bakri, Mohammed Hariri and Wan Yusof, Wan Yusrol Rizal and Mohd Noor, Nor Raihana Asmar and Abdullah, Hasni and Mohamed, Zulkifli (2020) The determinants of the bank regulation and supervision on the efficiency of Islamic Banks in different country’s income level. Journal of Asian Finance, Economics and Business, 7 (12). pp. 721-730. ISSN 2288-4637

Text COUNTRY.PDF Download (499kB)

Abstract

This study investigates the impact of the country's governance on the revenue efficiency of 108 Islamic banks from 26 countries offering‎ Islamic banking and finance products services. The technical efficiencies of individual Islamic banks have been analyzed using the Data ‎Envelopment Analysis method. The data will be pooled across the selected countries and utilize the intermediation approach. The Ordinary‎ Least Square estimation method is employed to examine the impact of country supervision and regulation on the technical efficiency of ‎Islamic banks. As robustness check, the study examines the impact of the level of bank regulations and supervision on the efficiency of ‎Islamic banks operating in different income-level countries. The results found that the stricter the supervisory power, the less strict capital ‎requirement, the tighter the restrictions on non-banking activities, and the stricter the private monitoring enhance statistically significantly ‎the level of efficiency of Islamic banks. In upgrading the regulations and supervision of the Islamic banks, the existing regulatory framework ‎based on the Basel Committee on Banking Supervision (BCBS) must be complemented with the prescriptions on Islamic banking or Shariah ‎compliance diligently, so that the Islamic banks could be regulated accurately and further improve the technical efficiency of their operations.

Item Type:	Article
Uncontrolled Keywords:	Supervision, Bank regulation, Islamic banks, Data envelopment analysis, Country income level
Divisions:	Faculty of Technology Management and Technopreneurship
Depositing User:	Sabariah Ismail
Date Deposited:	19 Apr 2021 12:57
Last Modified:	03 Aug 2023 15:38
URI:	http://eprints.utem.edu.my/id/eprint/25107
Statistic Details:	View Download Statistic

Actions (login required)

View Item