DOI: 10.36347/sjebm.2015.v02i01.002

Pages: 9-15

The banking system, comprising commercial banks, investment banks, and Islamic banks, is the primary mobiliser of funds and the main source of financing to support economic activities in Malaysia. Banking is significant in the overall economics flow to channel the fund, promotes better economic growth. This study by using Kourosh and Arash Method (KAM) in Data Envelopment Analysis (DEA), investigates the relative efficiency of 19 Malaysia’s banks in 2011, with 5 inputs and 7 outputs. The results suggest Malayan Banking Berhad – May bank as the most efficient bank in both CRS and VRS followed by the Royal Bank of Scotland Berhad and Public Bank Berhad. Moreover, KAM CRS suggests My bank as a reference set for all selected banks in this practice.