Cost, revenue, and profit efficiency of Islamic versus conventional banks: international evidence using data envelopment analysis

Shamsher, Mohamad and Bader, Mohammed Khaled I. and Hassan, Taufiq and Ariff, Mohamed (2008) Cost, revenue, and profit efficiency of Islamic versus conventional banks: international evidence using data envelopment analysis. In: Asian, FA-NFA 2008 International Conference, 6-9 July 2008, Yokohama, Japan.

Full text not available from this repository.

Official URL: http://works.bepress.com/cgi/viewcontent.cgi?article=1029&context=mohamed_ariff

Abstract

This paper measures and compares the cost, revenue, and profit efficiency of 43 Islamic and 37 conventional banks over the period 1990-2005 in 21 countries using Data Envelopment Analysis. In addition, it assesses the efficiency of those banks based on their size, age, and region. The findings suggest that there are no significant differences between the overall efficiency results of conventional versus Islamic banks. However, there is substantial room for improvement in cost minimisation and revenue and profit maximisation in both banking systems. Furthermore, the findings show no significance difference in average efficiency scores between big versus small and new versus old banks in both banking streams. This implies that size and age did not affect the performance of banks in both streams. However, geographical location explains the significant differences in revenue and profit efficiency between both streams of banks. Overall, the results are in favour of the more recent Islamic banking system.

Item Type:Conference or Workshop Item (Paper)
Keyword:Conventional Banks, Islamic Banks, Cost Efficiency, Revenue Efficiency, Profit Efficiency, Data Envelopment Analysis
Subject:Banking
Subject:Data envelopment analysis
Faculty or Institute:Faculty of Economics and Management
ID Code:8853
Deposited By: Samsida Samsudin
Deposited On:23 Dec 2010 04:32
Last Modified:23 Dec 2010 04:36

Repository Staff Only: item control page


Universiti Putra Malaysia Institutional Repository

Universiti Putra Malaysia Institutional Repository is an on-line digital archive that serves as a central collection and storage of scientific information and research at the Universiti Putra Malaysia.

Currently, the collections deposited in the IR consists of Master and PhD theses, Master and PhD Project Report, Journal Articles, Journal Bulletins, Conference Papers, UPM News, Newspaper Cuttings, Patents and Inaugural Lectures.

As the policy of the university does not permit users to view thesis in full text, access is only given to the first 24 pages only.