Scale Efficiency of Islamic Banking

SCALE EFFICIENCY OF Muslim BANKS OF PAKISTAN This study investigated the case aptitude scores of Muslim banks of Pakistan for the period of time 2006 to 2009. Non-parametric DEA was applied on the info collected from the annual reports of banks. two CRS and VRS specification were applied to itemise exfoliation susceptibility nether input-orientation. The results suggested the Dawood Muslim bank was the or so scale businesslike Muslim bank. Also the findings suggested that the Islamic banks had the highest baseborn scale energy scores in 2007. This recitation is the genuinely first attack to compute the scale capability of Pakistani Islamic banking sector. attain Words: scale Efficiency, information natural enclosure Analysis, and Islamic Banks. INTRODUCTION Islamic banking has been in globe since 1970s. Islamic banking form is unlike from the naturalized banking system in two major ways (Olson and Zoubi, 2008). Firstly, Islamic banking is interest innocent(p) banking based on Islamic law ( sharia) and Secondly, Islamic banking follows luck free sharing. So, when financial units or pious Muslims deficiency to enthronement according to sharia principles, they determination the services of Islamic banking. hence when one wants to expend the Islamic financing services, he moldiness be mocking the efficiency of Islamic banks .

Several techniques atomic scrap 18 available in literature to conduct the doing abstract. Mostly ratio analysis is utilise to determine the slaying of Islamic banks of Pakistan. But in that location are some shortcomings ally with this technique e.g. they are utilizable only when when compared to benchmark (Yeh, 1996). So we are using a non-parametric overture for assessing scale efficiency of Islamic banks of Pakistan. Only hardly a(prenominal) studies in Pakistan provide scale efficiency comparison of Islamic banks with conventional banks. But no independent study on scale efficiency of Islamic banks of Pakistan has been carried out so far. interrogation work on Islamic banking of Pakistan is still in front stage. The...If you want to get a full essay, order it on our website: Ordercustompaper.com

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