1.2

Purpose of the Study

The purpose of this study is two-fold as follows:

1. To identify the optimum approach and metrics for measuring the efficiency of Malaysian banks;

2. To analyze archival financial performance data using the optimum approach for measuring the efficiency of Malaysian banks to determine historic efficiency levels in an effort to identify opportunities for improvement in the future.

1.3

Importance of the Study

The importance of the study directly relates to the need to identify effective ways to measure the efficiency of Malaysian banks. The evaluation of bank efficiency, though, introduces a number of constraints that are related to the nature and function of financial intermediaries, particularly in view of the fact that banks provide products and services that are dissimilar to those found elsewhere. As a result, one of the most important issues involving the investigation the efficiency of the banking sector concerning the...
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