Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?
Asia-Pacific Journal of Business Administration
ISSN: 1757-4323
Article publication date: 16 November 2021
Issue publication date: 22 November 2022
Abstract
Purpose
Globalisation has influenced many countries, over the last few decades with financial globalisation and liberalisation bringing regulatory reforms in the banking sector. Thus, this study aims to fill a gap in the literature by examining the influence of globalisation on Islamic and conventional bank productivity in Southeast Asia.
Design/methodology/approach
The sample comprised 155 banks (23 Islamic and 132 conventional) from 4 countries from 2008 to 2017. Panel data techniques will be used, together with data envelopment analysis (DEA)-based Malmquist productivity index (MPI), to investigate the impact of chosen main determinants on bank productivity. A panel regression analysis will be performed after generating the productivity index from the DEA-based MPI frontier.
Findings
According to the findings, Islamic banks are statistically significantly more productive than conventional banks, and the findings of the t-test are corroborated by the findings of nonparametric tests. Furthermore, the findings of the panel regression model reveal that bank specific factors and macroeconomic variables are significant determinants to bank productivity. Surprisingly, the findings also show that the influence of social globalisation elements tends to be negatively related to conventional bank productivity.
Originality/value
This study adds to the existing literature by bridging the globalisation gap in the productivity of the dual banking industry, particularly in the specific context of Southeast Asia, given that the area is representative of Islamic and finance globally.
Keywords
Acknowledgements
The authors would like to thank the editors and the anonymous referees of the journal for constructive comments and suggestions, which have significantly helped to improve the contents of the paper. Furthermore, special thanks to Geran Penyelidikan Sekolah Perniagaan dan Ekonomi (GPSPE) 6303804-10601 sponsored by Sekolah Perniagaan dan Ekonomi, Universiti Putra Malaysia as an organization that funded our research. The usual caveats apply.
Citation
W Jubilee, R.V., Kamarudin, F., Abdul Latiff, A.R., Iqbal Hussain, H. and Mohamad Anwar, N.A. (2022), "Does globalisation have an impact on dual banking system productivity in selected Southeast Asian banking industry?", Asia-Pacific Journal of Business Administration, Vol. 14 No. 4, pp. 479-515. https://doi.org/10.1108/APJBA-09-2020-0343
Publisher
:Emerald Publishing Limited
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