Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis
This paper examines the multi-dimensional efficiency of the Islamic banking sector and its determinants, including the impacts of the COVID-19 pandemic. To do that, we use a novel approach of two-stage data envelopment analysis (DEA) double frontiers to evaluate the overall efficiency of 79 Islamic...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-02-01
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| Series: | International Journal of Financial Studies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7072/11/1/32 |
| _version_ | 1797858392467832832 |
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| author | Xuan Thi Thanh Mai Ha Thi Nhu Nguyen Thanh Ngo Tu D. Q. Le Lien Phuong Nguyen |
| author_facet | Xuan Thi Thanh Mai Ha Thi Nhu Nguyen Thanh Ngo Tu D. Q. Le Lien Phuong Nguyen |
| author_sort | Xuan Thi Thanh Mai |
| collection | DOAJ |
| description | This paper examines the multi-dimensional efficiency of the Islamic banking sector and its determinants, including the impacts of the COVID-19 pandemic. To do that, we use a novel approach of two-stage data envelopment analysis (DEA) double frontiers to evaluate the overall efficiency of 79 Islamic banks across 16 countries (2005–2020). In the first-stage analysis, we found that the Islamic banking sector experienced an increasing trend in its efficiency and performance, even during the recent pandemic, although it varied across banks and countries. Our empirical results of the second-stage analysis further showed that economic development can help countries both withstand the recent pandemic and improve the efficiency and performance of their (Islamic) banking system. This, in turn, could help speed up the recovery process of the global economy. Since there is evidence that the Islamic banking sector is resilient to the COVID-19 pandemic, it is expected that this sector will be a driving force of such recovery. |
| first_indexed | 2024-04-09T21:12:39Z |
| format | Article |
| id | doaj.art-0e63ca0c0d6045428fbf0d349bdb0618 |
| institution | Directory Open Access Journal |
| issn | 2227-7072 |
| language | English |
| last_indexed | 2024-04-09T21:12:39Z |
| publishDate | 2023-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj.art-0e63ca0c0d6045428fbf0d349bdb06182023-03-28T13:47:24ZengMDPI AGInternational Journal of Financial Studies2227-70722023-02-0111323210.3390/ijfs11010032Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers AnalysisXuan Thi Thanh Mai0Ha Thi Nhu Nguyen1Thanh Ngo2Tu D. Q. Le3Lien Phuong Nguyen4University of Economics & Business, Vietnam National University, Hanoi 10000, VietnamHo Chi Minh National Academy of Politics, Hanoi 10000, VietnamUniversity of Economics & Business, Vietnam National University, Hanoi 10000, VietnamInstitute for Development and Research in Banking Technology, University of Economics and Law, Ho Chi Minh City 700000, VietnamHanoi University, Hanoi 10000, VietnamThis paper examines the multi-dimensional efficiency of the Islamic banking sector and its determinants, including the impacts of the COVID-19 pandemic. To do that, we use a novel approach of two-stage data envelopment analysis (DEA) double frontiers to evaluate the overall efficiency of 79 Islamic banks across 16 countries (2005–2020). In the first-stage analysis, we found that the Islamic banking sector experienced an increasing trend in its efficiency and performance, even during the recent pandemic, although it varied across banks and countries. Our empirical results of the second-stage analysis further showed that economic development can help countries both withstand the recent pandemic and improve the efficiency and performance of their (Islamic) banking system. This, in turn, could help speed up the recovery process of the global economy. Since there is evidence that the Islamic banking sector is resilient to the COVID-19 pandemic, it is expected that this sector will be a driving force of such recovery.https://www.mdpi.com/2227-7072/11/1/32two-stage DEA double frontiersIslamic banksCOVID-19efficiencydeterminants |
| spellingShingle | Xuan Thi Thanh Mai Ha Thi Nhu Nguyen Thanh Ngo Tu D. Q. Le Lien Phuong Nguyen Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis International Journal of Financial Studies two-stage DEA double frontiers Islamic banks COVID-19 efficiency determinants |
| title | Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis |
| title_full | Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis |
| title_fullStr | Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis |
| title_full_unstemmed | Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis |
| title_short | Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis |
| title_sort | efficiency of the islamic banking sector evidence from two stage dea double frontiers analysis |
| topic | two-stage DEA double frontiers Islamic banks COVID-19 efficiency determinants |
| url | https://www.mdpi.com/2227-7072/11/1/32 |
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