Examining Efficiency of Islamic and Conventional Banks in Pakistan: Using Data Envelopment Analysis

sufian saeed; Farman Ali; Baber Adeeb

Examining Efficiency of Islamic and Conventional Banks in Pakistan: Using Data Envelopment Analysis

sufian saeed * §

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Farman Ali

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Baber Adeeb

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Muhammad Hamid

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§ Muhammad Ali Jinnah University, Islamabad, Pakistan

Examining Efficiency of Islamic and Conventional Banks in Pakistan: Using Data Envelopment Analysis

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Abstract

This study employs two approaches to assess efficiency of Islamic and Conventional banks in Pakistan by using Ratio analysis technique and a non parametric Data Envelopment Analysis technique. This research study considers 19 banks over the period of 2007-2011. The findings reveal in both methods that conventional banks are performing better than Islamic banks. This research study differ from other studies in respect that it uses two approaches to evaluate efficiency of public, private, foreign and Islamic banks. Furthermore, efficiency under Data Envelopment Analysis is evaluated by considering input and output oriented measures while lending funds, deposits and portfolio investments are taken as an output variable while input variables are borrowed funds and capital. This study calculates technical, pure and scale efficiency.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

sufian saeed, Farman Ali, Baber Adeeb, Muhammad Hamid. 1970. "Examining Efficiency of Islamic and Conventional Banks in Pakistan: Using Data Envelopment Analysis". Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 13 (GJMBR Volume 13 Issue C10).

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GJMBR Volume 13 Issue C10

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Conventional banks Data Envelopment Analysis efficiency Islamic banks Ratio analysis

Classification

GJMBR-C Classification JEL Code: G21

Submission ReceivedDecember 16, 2012
Peer Review Double Blind
Handling Editor
Accepted January 1, 2013
Published January 15, 2013

Version of record

v1.2

Language

English

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Article Matrices

Total Score: 151

Country: Pakistan

Subject: Global Journal of Management and Business Research

Authors: Sufian Saeed, Farman Ali, Baber Adeeb, Muhammad Hamid (PhD/Dr. count: 0)

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