Measuring efficiency of Islamic banks: criteria, methods, and social priorities
Abstract
This paper provides an appraisal of some of the researches conducted in recent years for evaluating the efficiency of Islamic banks. It is restricted to studies using parametric (SFA) and non-parametric (DEA) models. It finds that they leave much to be desired and the conclusions they arrive at are of suspect validity for a variety of reasons. On a more important side, the criteria – cost or profit – they invariably use for measuring efficiency albeit valid miss the essence of what Islamic banking aims to achieve. These banks must of course pay their way but more than that they have to meet certain social objectives and priorities. The fulfillment of social responsibilities even at the expense of reduced profits has to be the main justification for their existence.Download Info
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2977.Length:
Date of creation: 2004
Date of revision:
Publication status: Published in Islamic Economic Review 2.8(2004): pp. 1-30
Handle: RePEc:pra:mprapa:2977
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Keywords: Key words: Islamic banking; Efficiency criteria; SFA; DEA; Scial priorities. Key words: Islamic banking; Efficiency criteria; SFA; DEA; Scial priorities. Key words: Islamic banking; Efficiency criteria; SFA; DEA; Scial priorities. Islamic banking; Efficiency criteria; SFA; DEA; Scial priorities. Islamic banking; Efficiency criteria; SFA; DEA; Scial priorities;Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-12 (All new papers)
- NEP-BAN-2007-05-12 (Banking)
- NEP-EFF-2007-05-12 (Efficiency & Productivity)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Czerniak, Adam, 2010.
"Symptomy kryzysu globalnego a etyka gospodarcza religii światowych. Analiza porównawcza bankowości islamskiej i bankowości klasycznej w kontekście kryzysu finansowego
[The differences between ," MPRA Paper 26971, University Library of Munich, Germany. - Laurent Weill, 2010.
"Do Islamic Banks Have Greater Market Power?,"
Working Papers
548, Economic Research Forum, revised Sep 2010.
- Weill, Laurent, 2010. "Do Islamic banks have greater market power?," BOFIT Discussion Papers 2/2010, Bank of Finland, Institute for Economies in Transition.
- Laurent Weill, 2009. "Do Islamic Banks Have Greater Market Power ?," Working Papers of LaRGE Research Center 2009-02, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg (France).
- Sufian, Fadzlan & Abdul Majid, Muhamed Zulkhibri, 2007. "Bank Ownership, Characteristics and Performance: A Comparative Analysis of Domestic and Foreign Islamic Banks in Malaysia," MPRA Paper 12131, University Library of Munich, Germany, revised 01 Jun 2007.
- Hasan, Zubair, 2008.
"Islamic finance education at graduate level: Current position and challenges,"
MPRA Paper
8712, University Library of Munich, Germany, revised 2008.
- Hasan, Zubair, 2008. "Ialamic finance education at graduate level: Current position and challenges," MPRA Paper 8615, University Library of Munich, Germany.
- Samir Srairi, 2010. "Cost and profit efficiency of conventional and Islamic banks in GCC countries," Journal of Productivity Analysis, Springer, vol. 34(1), pages 45-62, August.
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