ABSTRACT
In this chapter, we discuss the policies and practices of the Malaysian banking industry since 1997 from various perspectives. This chapter further outlines the background of the banking sector in Malaysia, encompassing the general Malaysian banking sector and also describing the Islamic banking sector since the AFC period. The chapter then moves on to compare bank efficiency performance between conventional and the Islamic banks over the 2000–2016 period using the DEA nonparametric technique. The bank efficiency estimations are conducted via three perspectives including profit, cost, and technical efficiency. Finally, the chapter describes the issues and challenges faced by the Malaysian banking sector since the AFC.
