Efficiency of Islamic and conventional banks in Bangladesh: comparative study using DEA approach
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 th...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Islami Bank Training and Research Academy
2015
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/46098/ http://irep.iium.edu.my/46098/ http://irep.iium.edu.my/46098/1/Sanjida_2015.pdf |
| Summary: | 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. |
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