Technical Efficiency Determinants of Islamic Banks: How Do Countries Differ
Purpose: This paper analyzes the determinants of technical efficiency of Islamic banks in eight of the Islamic countries. These include Brunei Darussalam, Jordan, Indonesia, Pakistan, Malaysia, Turkey, Saudi Arabia, and the UAE. Design/Methodology/Approach: A quarterly panel data on eight Islamic...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
CSRC Publishing
2021-09-01
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| Series: | Sustainable Business and Society in Emerging Economies |
| Subjects: | |
| Online Access: | http://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/1843 |
| _version_ | 1819349895560036352 |
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| author | Muhammad Hanif Akhtar Muhammad Ramzan Sheikh Muzammil Ahmad Muhammad Bashir Khan |
| author_facet | Muhammad Hanif Akhtar Muhammad Ramzan Sheikh Muzammil Ahmad Muhammad Bashir Khan |
| author_sort | Muhammad Hanif Akhtar |
| collection | DOAJ |
| description | Purpose: This paper analyzes the determinants of technical efficiency of Islamic banks in eight of the Islamic countries. These include Brunei Darussalam, Jordan, Indonesia, Pakistan, Malaysia, Turkey, Saudi Arabia, and the UAE.
Design/Methodology/Approach: A quarterly panel data on eight Islamic countries’ banks during the period of 2014 to 2019 is used for the analysis.
Findings: The overall outcomes of the study indicate that banks in KSA, UAE, and Malaysia are found to be more efficient than their counterparts in other five countries in the sample. Banks from KSA and UAE have the same average technical efficiency scores while banks in Malaysia and Jordan tend to share similar average technical efficiency scores. Findings of the study reveal that variables like bank size, return on equity, and liquid asset ratio have a positive and significant bearing while factors like GDP growth rate, Z-score, and capital adequacy ratio have a negative and significant impact on technical efficiency of Islamic banks.
Implications/Originality/Value: The study puts forward some useful policy implications both for managers of banks and policymakers of countries in the sample. |
| first_indexed | 2024-12-24T19:07:47Z |
| format | Article |
| id | doaj.art-527d07ceff7048338307308453116616 |
| institution | Directory Open Access Journal |
| issn | 2708-2504 2708-2172 |
| language | English |
| last_indexed | 2024-12-24T19:07:47Z |
| publishDate | 2021-09-01 |
| publisher | CSRC Publishing |
| record_format | Article |
| series | Sustainable Business and Society in Emerging Economies |
| spelling | doaj.art-527d07ceff70483383073084531166162022-12-21T16:43:03ZengCSRC PublishingSustainable Business and Society in Emerging Economies2708-25042708-21722021-09-013310.26710/sbsee.v3i3.1843Technical Efficiency Determinants of Islamic Banks: How Do Countries DifferMuhammad Hanif Akhtar0Muhammad Ramzan Sheikh1Muzammil Ahmad2Muhammad Bashir Khan3Professor and Chairman, Department of Commerce, Bahauddin Zakariya University, Multan, PakistanAssociate Professor, School of Economics, Bahauddin Zakariya University, Multan, PakistanLecturer in Commerce, Punjab Group of Colleges, Multan, PakistanAssociate Professor, Department of Government and Public Policy, National Defense University, Islamabad, PakistanPurpose: This paper analyzes the determinants of technical efficiency of Islamic banks in eight of the Islamic countries. These include Brunei Darussalam, Jordan, Indonesia, Pakistan, Malaysia, Turkey, Saudi Arabia, and the UAE. Design/Methodology/Approach: A quarterly panel data on eight Islamic countries’ banks during the period of 2014 to 2019 is used for the analysis. Findings: The overall outcomes of the study indicate that banks in KSA, UAE, and Malaysia are found to be more efficient than their counterparts in other five countries in the sample. Banks from KSA and UAE have the same average technical efficiency scores while banks in Malaysia and Jordan tend to share similar average technical efficiency scores. Findings of the study reveal that variables like bank size, return on equity, and liquid asset ratio have a positive and significant bearing while factors like GDP growth rate, Z-score, and capital adequacy ratio have a negative and significant impact on technical efficiency of Islamic banks. Implications/Originality/Value: The study puts forward some useful policy implications both for managers of banks and policymakers of countries in the sample.http://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/1843Technical EfficiencyData EnvelopmentAnalysisIslamic BanksZ-score |
| spellingShingle | Muhammad Hanif Akhtar Muhammad Ramzan Sheikh Muzammil Ahmad Muhammad Bashir Khan Technical Efficiency Determinants of Islamic Banks: How Do Countries Differ Sustainable Business and Society in Emerging Economies Technical Efficiency Data Envelopment Analysis Islamic Banks Z-score |
| title | Technical Efficiency Determinants of Islamic Banks: How Do Countries Differ |
| title_full | Technical Efficiency Determinants of Islamic Banks: How Do Countries Differ |
| title_fullStr | Technical Efficiency Determinants of Islamic Banks: How Do Countries Differ |
| title_full_unstemmed | Technical Efficiency Determinants of Islamic Banks: How Do Countries Differ |
| title_short | Technical Efficiency Determinants of Islamic Banks: How Do Countries Differ |
| title_sort | technical efficiency determinants of islamic banks how do countries differ |
| topic | Technical Efficiency Data Envelopment Analysis Islamic Banks Z-score |
| url | http://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/1843 |
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