Efficiency Analysis of Islamic Banks in the Middle East and North Africa Region: A Bootstrap DEA Approach

Bahrini, Raéf

doi:10.3390/ijfs5010007

Cited by 38 publications

(35 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Simultaneously, the technical efficiency of Islamic banks is mainly based on the wrong Scale of their operations. Bahrini (2017) studied the determinants of Islamic banks' efficiency of MENA region Islamic banks using six years of data from 2007 to 2012. The study results show that pure technical inefficiency was a key determinant of technical inefficiency compared to scale inefficiency of all Islamic banks of the MENA region.…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia

Abbas

2021

SBR

View full text Add to dashboard Cite

Purpose: This study aims to compare the governance, risk-taking, and efficiency of pure Islamic Banks between Pakistan and Malaysia. Design: Total 9 years of data from 2009 to 2017 used for analysis. Data Envelopment Analysis (DEA) has been used for the measurement of Islamic bank's efficiency. Efficiency has been measured by (Technical Efficiency, Pure Technical Efficiency, and Scale Efficiency). Z-score has been used to measure risk-taking. Results: This comparative study shows that Shariah Supervisory Board has a significant impact only on Malaysian Islamic Banks with technical, pure technical, and scale efficiency. At the same time, board independence has a meaningful relationship with the efficiency of IBs of both countries. Board meetings significantly impact Pakistani Banks' pure technical efficiency while it substantially affects Malaysian banks' technical efficiency. Results also show that risk-taking has a significant negative impact on the efficiency of both countries. Implications: Pakistani Islamic banks should focus more on Shariah Supervisory Boards to develop the Islamic Banking system in Pakistan because it significantly impacts the Efficiency of Malaysian IBs.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia

Abbas

2021

SBR

View full text Add to dashboard Cite

show abstract

“…The outcomes of changes in the financial sector are studied by Sahoo and Tone (2009) using both radial and non-radial models to learn the progress of Indian banking system. Bahrini (2017) used non-radial SBM model on Islamic banks of Middle East and North Africa to show lower overall technological efficiency of banks. Both these studies did not emphasize on drawing significant implications related to model orientation.…”

Section: Literature Reviewmentioning

confidence: 99%

Application of Hybrid Approach in Banking System: An Undesirable Operational Performance Modelling

PREETI

Roy

2021

Global Business Review

View full text Add to dashboard Cite

Non-performing loans (NPLs) is a critical constituent that impacts the operational performance of banks. Rising level of risk leads to poor operational performance, especially when it is beyond the bank’s capabilities to control the increasing bad assets. This calls for real-time performance assessment coupled with futuristic decision making to support banking managers. This observation motivates the authors of this article to develop a two-stage performance prediction assessment model. Accordingly, a hybrid approach combining data envelopment analysis (DEA) and artificial neural network (ANN) is developed to measure and predict the operational efficiency scores of banks. DEA effectively explores the operational performance as well as improvable areas of inefficient banks. The training of ANN model is dependent on estimated operational DEA efficiency scores with the objective to estimate the efficiency scores. Domain for the validation of this study includes dataset derived from Indian banks. The validation result shows that trained ANN model has the prediction capacity with minimum error and maximum accuracy. Finally, the outcome of this study is significantly directed towards business managers who can rely on predictions based on empirical findings of this proposed hybrid modelling.

show abstract

“…However, at the center of the growth of Islamic banking assets is the GCC. These countries provide the largest share of total assets, more than 33% of the total (Bahrini, 2017).…”

Section: Introductionmentioning

confidence: 99%

Bootstrap Dea Efficiencies of the GCC Islamic Banks: Sources and Comparison During 2014-2016

Samad

2021

IJEFI

View full text Add to dashboard Cite

This paper, first, obtained three categories of efficiencies, overall bias-corrected technical efficiency (OTEBC), bias-corrected pure technical efficiency (PTEBC) and bias-corrected scale efficiency (SE) of the Islamic banks of the Gulf Cooperating Countries (GCC) during 2014-2016 using the Simar and Wilson (1998) Bootstrap data envelopment analysis (DEA). Second, decomposing the overall bias-corrected technical efficiency (OTEBC) the paper found the bias-corrected pure technical efficiency (PTEBC) and the bias-corrected scale efficiency (SE) were 91% and 59.8% respectively and thus PTEBC dominated the OTBBC (82.4%) and the SE (59.8%) of the GCC Islamic banks. Third, the paper found the sources of the inefficiency of the Islamic banks of the GCC was the DRS. Except the Islamic banks of Qatar, banks of the GCC countries were inefficient either because they operated under the IRS or DRS. DRS was the major source of inefficiency. Qatar Islamic banks demonstrated the highest level of efficiency in all three efficiency among GCC. The paper provides suggestions for future study.

show abstract

Efficiency Analysis of Islamic Banks in the Middle East and North Africa Region: A Bootstrap DEA Approach

Cited by 38 publications

References 38 publications

Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia

Corporate Governance, Risk-taking and Efficiency of Islamic Banks: Comparative Study Between Pakistan and Malaysia

Application of Hybrid Approach in Banking System: An Undesirable Operational Performance Modelling

Bootstrap Dea Efficiencies of the GCC Islamic Banks: Sources and Comparison During 2014-2016

Contact Info

Product

Resources

About