Efficiency in Islamic and conventional banks
AbstractWe examine efficiency in Islamic and conventional banks in the Gulf Cooperation Council (GCC) region (2004-2007) using financial ratio analysis (FRA) and data envelopment analysis (DEA). From the FRA, Islamic banks are less cost efficient but more revenue and profit efficient than conventional banks. Bootstrapping confirms these small sample results. From the DEA, average efficiency is significantly lower in Islamic than conventional banks. A decomposition method new to the banking context shows that the efficiency difference is more a consequence operating under Islamic rules than of managerial inadequacies. Productivity growth has been slight, and is caused mainly by positive technology change.
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Bibliographic InfoPaper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 601084.
Date of creation: 2009
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- Ali Said, 2013. "Risks and Efficiency in the Islamic Banking Systems: The Case of Selected Islamic Banks in MENA Region," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 66-73.
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