Empirical Study of Commercial Bank Performance in Malaysia Via Dea Model
Year: 2025
Type: article
Abstract: This study evaluates the financial performance of domestic commercial banks in Malaysia over the period 2001 to 2011. The sample consists of eight domestic commercial banks listed on the Malaysian Stock Market (Bursa Malaysia). Secondary data were sourced mainly from the banks’ annual reports and extracted from the DataStream of Thomson Reuters. Bank performance was analyzed using Data Envelopment Analysis (DEA) with an intermediation approach, employing interest expense and non-interest expense as input variables, and advances, loans, and investments as output variables in the efficiency score analysis. The DEA results reveal that the overall mean scale efficiency score (92.98%) is higher than the mean technical efficiency score (71.33%), indicating that during the study period, domestic banks were more efficient in optimizing economies of scale due to their size than in controlling operational costs.
Author: Sani Musa, Abubakar
Institution: Waziri Umaru Federal Polytechnic, Birnin Kebbi
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7103976455
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