Do Islamic versus conventional banks progress or regress in productivity level?

Jubilee, Ribed Vianneca W.; Kamarudin, Fakarudin; Latiff, Ahmed Razman Abdul; Hussain, Hafezali Iqbal; Tan, Khar Mang

doi:10.1186/s43093-021-00065-w

Future Business Journal

Table 7 Summary of parametric and nonparametric test on conventional and Islamic banks

From: Do Islamic versus conventional banks progress or regress in productivity level?

Region	No. of Obs.	Parametric test					Nonparametric test
		t test					Mann–Whitney [Wilcoxon Rank Sum] test					Kruskal–Wallis Equality of Population
		\(t ({\text{Prb}} > t)\)					\(z({\text{Prb}} > z)\)					\(X^{2} ({\text{Prb}} > X^{2} )\)
		TFPCH	TECHCH	EFFCH	PECH	SECH	TFPCH	TECHCH	EFFCH	PECH	SECH	TFPCH	TECHCH	EFFCH	PECH	SECH
Panel A: year 2007–2008
ALL	331	− 1.449	− 1.445	0.140	− 0.620	0.232	− 1.798^c	− 1.253	− 0.041	− 0.419	− 0.219	3.234^c	1.570	0.002	0.176	0.048
Mean Diff.		0.347	0.076	(0.030)	0.127	(0.017)	27.580	19.800	(0.650)	(6.630)	3.450	27.580	19.800	(0.650)	(6.630)	3.450
ME	142	− 0.421	0.670	0.105	− 0.394	− 0.651	− 0.038	− 0.402	− 0.135	− 1.279	− 0.909	0.001	0.162	0.018	1.635	0.825
Mean Diff.		0.132	(0.043)	(0.035)	0.148	0.057	0.360	(3.910)	(1.310)	(12.44)	8.830	0.360	(3.910)	(1.310)	(12.440)	8.830
SEA	132	− 2.153^c	− 3.589^a	− 0.230	− 0.378	0.307	− 3.644^a	− 3.072^a	− 0.301	− 0.416	− 0.350	13.276^a	9.434^a	0.090	0.173	0.123
Mean Diff.		1.076	0.384	0.088	0.109	(0.049)	41.550	36.990	3.620	5.010	(4.210)	41.550	36.99	3.620	5.010	(4.210)
SA	57	0.381	1.396	− 0.094	− 0.629	0.383	− 0.286	− 1.317	− 0.905	− 1.113	− 0.274	0.082	1.736	0.820	1.239	0.075
Mean Diff.		(0.118)	(0.111)	0.042	0.177	(0.056)	1.640	(7.58)	5.210	6.430	(1.580)	1.640	(7.580)	5.210	6.430	(1.580)
Panel B: year 2008–2009
ALL	330	0.100	0.533	− 0.267	− 0.167	− 0.299	− 0.235	− 1.047	− 0.075	− 0.127	− 0.416	0.055	1.095	0.006	0.016	0.173
Mean Diff.		(0.016)	(0.024)	0.059	0.027	(0.765)	(3.680)	(16.490)	(1.190)	2.010	(6.540)	(3.680)	(16.490)	(1.190)	2.010	(6.540)
ME	135	− 0.416	0.021	− 0.597	− 0.888	0.021	− 0.373	− 0.418	− 0.025	− 0.848	− 0.963	0.139	0.174	0.001	0.719	0.927
Mean Diff.		0.113	(0.001)	0.238	0.225	(0.004)	3.620	4.040	(0.240)	8.210	(9.310)	3.620	4.040	(0.240)	8.210	(9.310)
SEA	137	0.090	− 0.392	0.501	0.457	0.073	− 0.615	− 0.268	− 0.386	− 0.694	− 0.015	0.378	0.072	0.149	0.482	0.001
Mean Diff.		(0.025)	0.039	(0.184)	(0.139)	(0.009)	(7.020)	(3.100)	(4.460)	(8.030)	(0.170)	(7.02)	(3.100)	(4.460)	(8.030)	(0.170)
SA	58	0.362	2.168^c	− 0.374	0.425	− 1.155	− 0.588	− 2.419^b	− 0.401	− 0.227	− 0.093	0.346	5.851^b	0.161	0.051	0.009
Mean Diff.		(0.073)	(1.147)	0.079	(0.088)	0.129)	(3.440)	(13.200)	2.360	(1.330)	0.540	(3.440)	(14.200)	2.360	(1.330)	0.540
Panel C: year 2009–2010
ALL	341	3.075^a	0.796	2.538^b	1.086	0.174	− 1.887^c	− 0.318	− 1.384	− 1.032	− 1.355	3.559^c	0.101	1.917	1.066	1.836
Mean Diff.		(0.368)	(0.026)	(0.332)	(0.229)	(0.021)	(27.960)	(4.720)	(20.550)	(15.330)	(20.11)	(27.960)	(4.720)	(20.550)	(15.330)	(20.110)
ME	146	2.601^b	0.353	2.423^b	1.980^b	− 0.414	− 1.530	− 0.463	− 1.407	− 1.036	− 0.870	2.340	0.214	1.979	1.073	0.756
Mean Diff.		(0.499)	(0.019)	(0.493)	(0.446)	0.093	(13.990)	4.230	(12.870)	(9.480)	(7.960)	(13.990)	4.230	(12.870)	(9.480)	(7.960)
SEA	139	0.841	0.216	0.742	0.444	0.733	− 0.781	− 0.350	− 0.564	− 0.518	− 0.093	0.610	0.122	0.318	0.268	0.009
Mean Diff.		(0.252)	(0.009)	(0.239)	(0.139)	(0.106)	(8.260)	(3.740)	(6.040)	(5.550)	(0.980)	(8.260)	(3.740)	(6.04)	(5.550)	(0.980)
SA	56	0.890	0.896	0.533	− 0.276	1.125	− 0.267	− 1.284	− 0.214	− 0.107	− 1.458	0.072	1.648	0.046	0.011	0.046
Mean Diff.		(0.323)	(0.052)	(0.202)	0.069	(0.245)	(1.520)	(7.300)	(1.220)	0.610	(8.280)	(1.520)	(7.300)	(1.220)	0.610	(8.280)
Panel D: year 2010–2011
ALL	344	− 0.645	0.141	− 0.666	− 0.088	0.089	− 0.843	− 0.426	− 0.839	− 0.926	− 0.299	0.710	0.182	0.704	0.182	0.089
Mean Diff.		1.149	(0.004)	0.162	0.019	(0.011)	12.410	(6.290)	12.370	13.640	4.390	12.410	12.410	12.370	12.370	4.390
ME	145	− 0.161	− 0.671	− 0.112	0.080	0.450	− 0.199	− 0.660	− 0.330	− 0.086	− 0.548	0.040	0.435	0.109	0.007	0.300
Mean Diff.		0.064	0.028	0.045	(0.029)	(0.083)	(1.840)	6.090	(3.050)	0.800	(5.050)	(1.840)	6.090	(3.050)	0.800	(5.050)
SEA	139	0.214	− 0.519	0.486	0.249	0.857	− 0.646	− 0.289	− 0.897	− 0.210	− 0.913	0.418	0.083	0.805	0.044	0.834
Mean Diff.		(0.074)	0.029	(0.190)	(0.099)	(0.162)	(6.540)	2.940	(9.120)	(2.140)	(9.280)	(6.540)	2.940	(9.120)	(2.280)	(9.280)
SA	60	− 1.522	2.237^b	− 2.129^b	− 1.551	− 1.330	− 2.761^a	− 2.168^b	− 3.210^a	− 2.637^a	− 2.596^a	7.622^a	4.702^b	10.302^a	6.952^a	6.737^a
Mean Diff.		0.623	(0.126)	0.937	0.340	0.365	16.090	(12.640)	18.700	15.370	15.030	16.090	(12.640)	18.700	15.370	15.030
Panel E: year 2011–2012
ALL	349	− 0.782	1.740^c	− 0.986	0.245	− 0.910	− 0.011	− 0.597	− 0.371	− 0.334	− 0.808	0.001	0.356	0.138	0.111	0.652
Mean Diff.		0.154	(0.043)	0.187	(0.046)	0.256	0.170	(8.840)	5.510	4.940	(11.950)	0.170	(8.840)	5.510	4.940	(11.950)
ME	145	− 0.619	0.269	− 0.649	− 0.135	− 0.680	− 0.207	− 0.013	− 0.450	− 0.456	− 0.577	0.043	0.001	0.203	0.207	0.333
Mean Diff.		0.204	(0.011)	0.197	0.042	0.079	1.910	(0.120)	4.160	4.200	(5.320)	1.910	(0.120)	4.160	4.200	(5.320)
SEA	144	0.224	1.444	0.067	0.341	0.600	− 0.145	− 0.650	− 0.453	− 0.643	− 0.266	0.021	0.422	0.205	0.414	0.071
Mean Diff.		(0.057)	(0.080)	(0.016)	(0.112)	(0.107)	1.520	(6.820)	4.770	6.770	(2.790)	1.520	(6.820)	4.770	6.770	(2.790)
SA	60	− 0.733	1.647	− 0.919	− 0.028	− 0.936	− 0.083	− 0.240	− 0.277	− 0.111	− 1.187	0.007	0.058	0.077	0.012	1.410
Mean Diff.		0.377	(0.049)	0.503	0.005	1.139	(0.460)	(1.350)	1.560	(0.630)	(6.660)	(0.460)	(1.350)	1.560	(0.630)	(6.660)
Panel F: year 2012–2013
ALL	366	− 1.082	− 2.465^b	− 0.756	0.199	− 0.984	− 0.458	− 1.566	− 0.067	− 0.222	− 1.143	0.210	2.452	0.004	0.049	1.307
Mean Diff.		0.256	0.066	0.161	(0.053)	0.084	6.550	22.380	(0.960)	(3.170)	16.330	6.550	22.380	(0.960)	(3.170)	16.330
ME	145	− 0.938	− 1.433	− 0.705	− 0.130	− 0.713	− 1.337	− 1.155	− 0.932	− 0.283	− 1.138	1.789	1.333	0.868	0.080	1.295
Mean Diff.		0.317	0.058	0.263	0.074	0.063	(11.820)	10.200	8.230	2.500	10.050	11.820	10.200	8.230	2.500	10.050
SEA	148	− 0.851	− 1.193	− 0.596	0.467	− 1.039	− 0.075	− 0.040	− 0.094	− 0.275	− 0.771	0.006	0.002	0.009	0.076	0.595
Mean Diff.		0.429	0.058	0.288	(0.122)	0.189	0.750	0.400	0.940	2.720	7.630	0.750	0.400	0.940	2.720	7.630
SA	63	0.517	− 2.390^b	0.940	1.395	− 0.139	− 1.240	− 2.208^b	− 1.732^c	− 1.699^c	− 0.477	1.537	2.885^b	3.001^c	2.885^c	0.228
Mean Diff.		(0.153)	0.104	(0.282)	(0.298)	0.020	(7.080)	12.600	(9.890)	(9.690)	2.710	(7.080)	12.600	(9.890)	(9.690)	2.710
Panel G: Year 2013–2014
ALL	370	0.003	− 0.953	− 0.008	− 0.051	− 0.430	− 1.117	− 0.276	− 1.461	− 1.087	− 1.318	1.249	0.076	2.133	1.182	1.736
Mean Diff.		(0.001)	0.025	0.002	0.010	0.057	(16.430)	4.060	(21.470)	(15.980)	(19.350)	(16.430)	4.060	(21.470)	(15.980)	(19.350)
ME	149	1.573	− 1.852c	2.423^b	1.000	1.718^c	− 0.309	− 1.458	− 1.268	− 0.688	− 1.691^c	0.096	2.125	1.608	0.473	2.860
Mean Diff.		(0.369)	0.101	(0.600)	(0.379)	(0.184)	(2.760)	13.010	(11.320)	(6.150)	(15.070)	(2.760)	13.010	(11.320)	(6.150)	(15.070)
SEA	151	− 0.830	1.223	− 1.055	− 0.597	− 0.801	− 1.217	− 0.611	− 0.862	− 1.157	− 0.005	1.481	0.373	0.743	1.340	0.001
Mean Diff.		0.375	(0.053)	0.627	0.265	0.481	(12.060)	(6.050)	(8.540)	(11.470)	(0.050)	(12.06)	(6.050)	(8.540)	(11.470)	(0.050)
SA	70	− 0.192	− 0.258	− 0.258	− 1.000	2.691^a	− 0.717	− 0.725	− 0.662	− 0.304	− 1.046	0.514	0.525	0.439	0.092	1.093
Mean Diff.		0.071	0.013	0.099	0.344	(0.206)	(4.620)	(4.670)	(4.270)	(1.960)	(6.740)	(4.620)	(4.670)	(4.270)	(1.960)	(6.740)
Panel H: year 2014–2015
ALL	369	0.734	3.334^a	− 0.198	0.659	− 1.891^c	− 0.898	− 2.960^a	− 0.131	− 1.139	− 2.253^b	0.807	8.763^a	0.017	1.297	5.077^b
Mean Diff.		(0.146)	(0.104)	0.038	(0.152)	0.197	(13.180)	(43.410)	1.920	(16.700)	33.000	(13.180)	(43.410)	1.920	(16.700)	33.000
ME	151	1.379	2.695^a	0.868	0.941	− 0.818	− 1.493	− 2.846^a	− 0.727	− 0.777	− 0.244	2.228	8.100^a	0.529	0.604	0.059
Mean Diff.		(0.481)	(0.135)	(0.288)	(0.395)	0.079	(13.490)	(25.720)	(6.570)	(7.020)	2.200	(13.490)	(25.720)	(6.570)	(7.020)	2.200
SEA	147	− 0.821	0.481	− 1.206	− 0.864	− 0.103	− 0.521	− 0.003	− 0.744	− 0.076	− 0.704	0.272	0.001	0.553	0.006	0.495
Mean Diff.		0.239	(0.024)	0.329	0.293	0.013	5.130	0.020	7.330	(0.750)	6.930	5.130	0.020	7.330	(0.750)	6.930
SA	71	0.262	3.080	− 0.583	1.212	− 2.104^c	− 0.572	− 2.498^b	− 0.349	− 1.644^c	− 3.545^a	0.328	6.239^b	0.122	2.703^c	12.568^a
Mean Diff.		(0.098)	(0.191)	0.246	(0.431)	0.796	(3.620)	(15.820)	2.220	(10.410)	22.410	(3.620)	(15.820)	2.220	(10.410)	22.410
Panel I: year 2015–2016
ALL	361	− 2.698^a	− 1.584	− 2.478^b	− 2.076^b	− 0.349	− 3.665^a	− 1.330	− 2.872^a	− 3.378^a	− 0.195	13.432^a	1.769	8.248^a	11.413^a	0.038
Mean Diff.		0.639	0.046	0.645	0.536	0.030	54.440	19.760	42.660	50.170	2.890	54.440	19.760	42.660	50.170	2.890
ME	148	− 2.421^b	− 1.661^c	− 2.192^b	− 1.987^b	− 0.565	− 3.155^a	− 1.351	− 2.515^b	− 2.887^a	− 0.027	9.956^a	1.824	6.325^b	8.337^a	0.001
Mean Diff.		1.076	0.081	1.081	0.914	0.076	28.790	12.320	22.50	26.350	(0.250)	28.790	12.320	22.50	26.350	(0.250)
SEA	146	− 1.449	− 0.064	− 1.495	− 1.844^c	0.733	− 2.180^b	− 0.722	− 2.172^b	− 2.429^b	− 0.107	4.752^b	0.521	4.717^b	5.900^b	0.011
Mean Diff.		0.356	0.003	0.366	0.439	(0.114)	21.320	7.060	21.250	23.760	(1.050)	21.320	7.060	21.250	23.760	(1.050)
SA	67	− 0.110	− 0.631	− 0.070	0.873	− 0.909	− 0.370	− 0.070	− 0.220	− 0.669	− 0.397	0.137	0.005	0.048	0.448	0.157
Mean Diff.		0.044	0.043	0.030	(0.327)	0.202	2.470	0.470	(1.470)	(4.470)	2.640	2.470	0.470	(1.470)	(4.470)	2.640
Panel J: year 2016–2017
ALL	364	0.393	− 3.022^a	3.753^a	2.865^b	1.534	− 0.225	− 2.446^b	− 1.113	− 1.240	− 0.184	0.050	5.984^b	1.239	1.538	0.034
Mean Diff.		(0.088)	0.144	(0.980)	0.144	(0.138)	(3.290)	35.880	(16.330)	(18.200)	(2.700)	(3.290)	35.880	(16.330)	(18.200)	(2.700)
ME	148	2.095^b	− 2.355^b	3.597^a	2.226^b	0.547	− 0.698	− 2.142^b	− 1.469	− 1.427	− 0.460	0.487	4.588^b	2.157	2.037	0.212
Mean Diff.		(0.512)	0.142	(1.469)	(1.273)	(0.101)	(6.280)	19.280	(13.210)	(12.840)	(1.140)	(6.280)	19.280	(13.210)	(12.840)	(1.140)
SEA	147	− 1.050	− 3.341^a	1.549	0.721	1.867^c	− 0.709	− 2.552^b	− 0.176	− 0.291	− 0.326	0.502	6.513^b	0.031	0.084	0.106
Mean Diff.		0.435	0.275	(0.760)	(0.579)	(0.257)	6.970	25.120	1.740	2.860	(3.210)	6.970	25.120	1.740	2.860	(3.210)
SA	69	0.510	0.243	0.960	2.222^b	− 0.117	− 0.602	− 0.024	− 1.005	− 1.282	− 0.705	0.362	0.001	1.011	1.644	0.496
Mean Diff.		(0.097)	(0.026)	(0.410)	(0.599)	0.016	(3.840)	0.160	(6.400)	(8.170)	4.490	(3.840)	0.160	(6.400)	(8.170)	4.490
Panel K: all years and regions
ALL	3515	− 1.488	− 1.700^c	0.152	0.765	− 1.034	− 0.605	− 0.408	− 0.090	− 0.202	− 0.044	0.366	0.166	0.008	0.041	0.002
Mean Diff.		0.100	0.019	(0.012)	(0.066)	0.049	28.360	19.100	(4.240)	(9.480)	2.070	28.360	19.100	(4.240)	(9.480)	2.070
ME	1454	0.007	− 1.340	0.910	0.737	− 0.044	− 0.161	− 0.847	− 0.503	− 0.004	− 0.779	0.026	0.717	0.253	0.001	0.607
Mean Diff.		(0.000)	0.024	(0.120)	(0.119)	0.002	4.640	24.440	(14.510)	0.110	(22.470)	4.640	24.440	(14.510)	0.110	(22.470)
SEA	1430	− 2.014^b	− 2.957^a	− 0.328	0.044	− 0.060	− 0.897	1.945^c	− 0.105	− 0.112	− 0.223	0.805	3.783^c	0.011	0.012	0.050
Mean Diff.		0.255	0.059	0.044	(0.006)	0.004	29.030	63.000	(3.420)	3.610	(7.240)	29.030	63.000	(3.420)	3.610	(7.240)
SA	631	− 0.251	2.160^b	− 0.790	1.210	− 1.629	− 0.103	− 3.019^a	− 0.590	− 0.776	− 1.401	0.011	9.116^a	0.348	0.602	0.011
Mean Diff.		0.028	(0.050)	0.099	(0.101)	0.236	(1.950)	(57.140)	11.160	(14.680)	26.470	(1.950)	(57.140)	11.160	(14.680)	26.470

^a, ^b, ^c indicate significance at the 1%, 5% and 10% levels, respectively
In bracket indicates the productivity mean of conventional banks is higher than Islamic banks

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