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Efficiency of Islamic and conventional banks in Bangladesh: comparative study using DEA approach

Islam, Sanjida and Kassim, Salina (2015) Efficiency of Islamic and conventional banks in Bangladesh: comparative study using DEA approach. Journal of Islamic Economics, Banking and Finance, 11 (3). pp. 83-110. ISSN 2070-4658

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Abstract

This study involves comparing the efficiency between Islamic and conventional banks in Bangladesh using the Data Envelopment Analysis. It considers 25 commercial banks, of which seven are Islamic, while eighteen are conventional, covering the period from 2009 to 2013.The study finds that the Islamic banks have been pure technically efficient but their scale efficiency is not satisfactory, suggesting that scale inefficiency is the main source of inefficiency of the Islamic banks. In contrast, the conventional banks are found to be pure technically inefficient, but their scale efficiency is satisfactory. The study hopes to contribute towards providing important inputs for the betterment of the banking industry in Bangladesh.

Item Type: Article (Journal)
Additional Information: 4600/46098
Uncontrolled Keywords: Efficiency, Islamic banks, conventional banks, DEA, Bangladesh
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Salina Kassim
Date Deposited: 09 Dec 2015 10:41
Last Modified: 15 Nov 2017 14:42
URI: http://irep.iium.edu.my/id/eprint/46098

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