EFFICIENCY AND STABILITY OF ISLAMIC BANKING IN ASEAN

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  • 05 Jan
  • 2021

EFFICIENCY AND STABILITY OF ISLAMIC BANKING IN ASEAN

This study analyzes the level of efficiency and stability of Islamic Banking in ASEAN. In addition, this study also analyzed differences in the level of efficiency and stability of Islamic Banking in ASEAN. The study using the sample of seven Islamic Bank in five countries in the ASEAN region in 2013-2017. The method used to measure efficiency is Stochastic Frontier Analysis, while for stability use the Z-Score. Tests carried out in this study were hypothesis testing with Binomial Test and Kruskal-Wallis Test. Based on the results of the study, the average efficiency value of Islamic Banking in ASEAN as a whole is equal to 0,986503. Then based on the Binomial Test, proving that Islamic Banking in ASEAN is efficient. Meanwhile, the average stability value of Islamic Banking in ASEAN as a whole is worth 5.21. Then based on the Binomial Test, proving that Islamic Banking in ASEAN is stable. Furthermore, for the Kruskal-Wallis difference test conducted, it proves that there is no significant difference between the level of efficiency of Islamic Banking in ASEAN, whereas for stability there is a significant difference between the level of stability of Islamic Banking in ASEAN

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