Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence

This study investigates the efficiency of Islamic banks in four regions; Africa, the Far East and Central Asia, Europe and the Middle East during the period of 2003-2008. The non-parametric approach, Data Envelopment Analysis is utilised to analyse the technical and scale efficiencies of Islamic ban...

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Main Authors: Mohd Tahir, Izah, Abu Bakar, Nor Mazlina, Haron, Sudin
Format: Article
Language:English
Published: Islamic Bank Training and Research Academy, Islamic Bank Bangladesh Limited 2011
Online Access:http://psasir.upm.edu.my/id/eprint/14264/
http://psasir.upm.edu.my/id/eprint/14264/1/Evaluating%20efficiency%20of%20Islamic%20banks%20using%20data%20envelopment%20analysis%20international%20evidence.pdf
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author Mohd Tahir, Izah
Abu Bakar, Nor Mazlina
Haron, Sudin
author_facet Mohd Tahir, Izah
Abu Bakar, Nor Mazlina
Haron, Sudin
author_sort Mohd Tahir, Izah
building UPM Institutional Repository
collection Online Access
description This study investigates the efficiency of Islamic banks in four regions; Africa, the Far East and Central Asia, Europe and the Middle East during the period of 2003-2008. The non-parametric approach, Data Envelopment Analysis is utilised to analyse the technical and scale efficiencies of Islamic banks. Overall, the results suggest that mean efficiency of Islamic banks have declined over the period from 0.746 in 2003 to 0.544 in 2008. During the period of study, our results suggest that pure technical inefficiency has largely resulted in the overall inefficiency of Islamic banks. Using a series of parametric and non-parametric tests, our results indicate that there are significant differences in efficiencies between size and not between regions. Large sized banks tend to be efficient than the small and medium sized banks.
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publishDate 2011
publisher Islamic Bank Training and Research Academy, Islamic Bank Bangladesh Limited
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spelling upm-142642018-10-08T02:45:27Z http://psasir.upm.edu.my/id/eprint/14264/ Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence Mohd Tahir, Izah Abu Bakar, Nor Mazlina Haron, Sudin This study investigates the efficiency of Islamic banks in four regions; Africa, the Far East and Central Asia, Europe and the Middle East during the period of 2003-2008. The non-parametric approach, Data Envelopment Analysis is utilised to analyse the technical and scale efficiencies of Islamic banks. Overall, the results suggest that mean efficiency of Islamic banks have declined over the period from 0.746 in 2003 to 0.544 in 2008. During the period of study, our results suggest that pure technical inefficiency has largely resulted in the overall inefficiency of Islamic banks. Using a series of parametric and non-parametric tests, our results indicate that there are significant differences in efficiencies between size and not between regions. Large sized banks tend to be efficient than the small and medium sized banks. Islamic Bank Training and Research Academy, Islamic Bank Bangladesh Limited 2011 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/14264/1/Evaluating%20efficiency%20of%20Islamic%20banks%20using%20data%20envelopment%20analysis%20international%20evidence.pdf Mohd Tahir, Izah and Abu Bakar, Nor Mazlina and Haron, Sudin (2011) Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence. Journal of Islamic Economics, Banking and Finance, 7 (1). pp. 11-24. ISSN 2070-4658 http://ibtra.com/journal_back_issue_individual.php?j_id=16
spellingShingle Mohd Tahir, Izah
Abu Bakar, Nor Mazlina
Haron, Sudin
Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence
title Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence
title_full Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence
title_fullStr Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence
title_full_unstemmed Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence
title_short Evaluating efficiency of Islamic banks using data envelopment analysis: international evidence
title_sort evaluating efficiency of islamic banks using data envelopment analysis: international evidence
url http://psasir.upm.edu.my/id/eprint/14264/
http://psasir.upm.edu.my/id/eprint/14264/
http://psasir.upm.edu.my/id/eprint/14264/1/Evaluating%20efficiency%20of%20Islamic%20banks%20using%20data%20envelopment%20analysis%20international%20evidence.pdf