Cost and Profit Efficiency of the Malaysian Commercial Banks: A Comparison between Domestic and Foreign Banks

Abstract

This study examines the relative efficiency levels of domestic and foreign commercial banks in Malaysia between 2000 and 2006, using accounting-based ratio, stochastic cost and profit frontier approach. Using accounting-based ratio, the results suggest that interest margin and operating cost are slightly higher for domestic banks than for foreign banks. Further, the results also suggest that profit ratios are slightly higher for foreign banks relative to domestic banks. Using the stochastic frontier approach, the results indicate that domestic banks are found to be more cost-efficient but less profit -efficient relative to foreign banks.

Analisis Kinerja Keuangan Koperasi pada Kospin Jasa Sebelum dan Sesudah Penerapan Sistem Online

“…Hasil penelitian ini mendukung teori signalling, dimana sinyal perusahaan yang positif dengan adanya penerapan sistem online membuat ROA lebih besar dari sebelum penerapan sistem online. Hasil penelitian ini mendukung penelitian terdahulu yang dilakukan oleh: Tahir et al, (2010).…”

“…Laba yang ditahan perusahaan yang sangat tinggi sudah memenuhi untuk membiyai sebagaian besar kebutuhan pendanaan. Tahir et al, (2010) menunjukkan adanya perbedaan ROA sebelum sistem online dan sesudah sistem online.…”

“…Jika rasio ini menunjukkan angka yang rendah maka perusahaan dalam kondisi idle money atau kelebihan likuiditas yang akan menyebabkan perusahaan kehilangan kesempatan untuk memperoleh laba lebih besar. Tahir et al, (2010)…”

Impact of Banking Supervision on the Cost-Efficiency of Banks: A Study of Five Developing Asian Countries

“…In contrast, the pure technical efficiency is greater than size efficiency in foreign banks. Tahir et al (2010) employed the stochastic frontier approach (SFA), though, to investigate cost-and profit efficiencies between domestic and foreign banks in Malaysia.…”

Cost and Profit Efficiency of Online Banks: Do National Commercial Banks Perform better than Private Banks?

“…How far they have achieved their desired goals? Bank cost and profit efficiency studies are available in literature [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19]. There has been a prevalent discussion about lack of sufficient technical efficiency of banks in developing countries like in Bangladesh compared to their counterparts in the developed world [20][21][22][23].…”