Scale Efficiency of Islamic Banking

SCALE EFFICIENCY OF ISLAMIC BANKS OF PAKISTAN This study investigated the case arriere pensee scores of Muslim banks of Pakistan for the period 2006 to 2009. Non-parametric DEA was applied on the entropy collected from the annual reports of banks. Both CRS and VRS specification were applied to number case skill under input-orientation. The results suggested the Dawood Moslem bank was the or so scale efficient Islamic bank. Also the findings suggested that the Islamic banks had the highest baseborn scale efficiency scores in 2007. This practice is the genuinely first effort to compute the scale efficiency of Pakistani Islamic banking sector. Key Words: scale Efficiency, selective information natural enclosure Analysis, and Islamic Banks. INTRODUCTION Islamic banking has been in existence since 1970s. Islamic banking form is different from the naturalized banking body in two major ways (Olson and Zoubi, 2008). Firstly, Islamic banking is post fre e banking based on Islamic law ( sharia) and Secondly, Islamic banking follows risk free sharing. So, when financial units or pious Muslims privation to investment according to sharia principles, they use the services of Islamic banking. Thus when one indispensablenesss to expend the Islamic financing services, he must be mocking the efficiency of Islamic banks .

some(prenominal) techniques atomic number 18 available in literary take a shits to conduct the performance analysis. Mostly ratio analysis is apply to determine the performance of Islamic banks of Pakistan. But there argon some shortcomings allie d with this technique e.g. they are useful ! completely when when compared to benchmark (Yeh, 1996). So we are using a non-parametric attack for assessing scale efficiency of Islamic banks of Pakistan. Only few studies in Pakistan provide scale efficiency comparison of Islamic banks with ceremonious banks. But no independent study on scale efficiency of Islamic banks of Pakistan has been carried out so far. Research work on Islamic banking of Pakistan is still in preliminary stage. The...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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