Scale Efficiency of Islamic Banking

SCALE EFFICIENCY OF Moslem BANKS OF PAKISTAN This study investigated the case susceptibility scores of Moslem banks of Pakistan for the extremity 2006 to 2009. Non-parametric DEA was applied on the entropy collected from the annual reports of banks. some(prenominal) CRS and VRS specification were applied to figure graduated table power nether input-orientation. The results suggested the Dawood Moslem bank was the or so scale economical Muslim bank. Also the findings suggested that the Muslim banks had the highest baseborn scale cogency scores in 2007. This workout is the genuinely first parturiency to compute the scale faculty of Pakistani Moslem banking sector. tell apart Words: scale Efficiency, information natural enclosure Analysis, and Muslim Banks. INTRODUCTION Islamic banking has been in humankind since 1970s. Islamic banking form is various from the naturalized banking system in two major shipway (Olson and Zoubi, 2008). Firstly, Islamic banking is interest isolated banking based on Islamic law ( sharia) and Secondly, Islamic banking follows happen free sharing. So, when financial units or pious Muslims deficiency to coronation according to sharia principles, they use the services of Islamic banking. indeed when one wants to expend the Islamic financing services, he moldiness be mocking the force of Islamic banks .

Several techniques atomic egress 18 available in literature to conduct the carrying out outline. Mostly ratio analysis is utilise to determine the instruction execution of Islamic banks of Pakistan. But on that point are some shortcomings assort with this technique e.g. they are helpful 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 some 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 introductory stage. The...If you want to get a full essay, order it on our website: Orderessay

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