Cost, Revenue, and Profit Efficiency of Islamic versus Conventional Banks: International Evidence Using Data Envelopment Analysis

54 Pages Posted: 10 Apr 2018

See all articles by Mohammed Khaled I. Bader

Mohammed Khaled I. Bader

Al-Quds University

Shamsher Mohamad

University Putra Malaysia - Graduate School of Management

Mohamed Ariff

Deakin University

Taufiq Hassan Shah

University Putra Malaysia - Faculty of Economics and Management

Date Written: January 1, 2008

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. It assesses the average and overtime efficiency of those banks based on their size, age, and region using static and dynamic panels. The findings suggest that there are no significant differences between the overall efficiency results of conventional versus Islamic banks. Overall, the results in this paper are favorable with the ‘new’ banking system

Suggested Citation

Bader, Mohammed Khaled I. and Mohamad, Shamsher and Ariff, Mohamed and Shah, Taufiq Hassan, Cost, Revenue, and Profit Efficiency of Islamic versus Conventional Banks: International Evidence Using Data Envelopment Analysis (January 1, 2008). Islamic Economic Studies, Vol. 15, No. 2, 2008. Available at SSRN: https://ssrn.com/abstract=3159925

Mohammed Khaled I. Bader (Contact Author)

Al-Quds University ( email )

Jerusalem
Palestine

Shamsher Mohamad

University Putra Malaysia - Graduate School of Management ( email )

Selangor Darul Ehsan
Serdang, Selangor 43400
Malaysia

Mohamed Ariff

Deakin University ( email )

75 Pigdons Road
Victoria, Victoria 3216
Australia

Taufiq Hassan Shah

University Putra Malaysia - Faculty of Economics and Management ( email )

Serdang, Selangor 43400
Malaysia

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