Performance of islamic banks across the world: an empirical analysis over the period 2001-2008

MPRA Paper from University Library of Munich, Germany

Abstract: Our study aims at analyzing Islamic bank efficiency over the period 2001-2008. We found that they were efficient at 92%. The level of efficiency could however vary according to the region where they operate. Asia displays the highest score with 96%. Indeed, country like Malaysia made reforms in order to allow these banks to better cope with the existing financial system, display the highest scores. On the contrary countries with Islamic banking system do not necessarily display efficiency scores superior to the average. The subprime crisis seems to have impacted those banks indirectly. And market power and profitability have a positive impact on Islamic banks efficiency, while it is the contrary for their size. The latter implies that they do not benefit from scale economy, may be because of the specificity of Islamic financial products.

Keywords: Islamic Finance; Islamic Banks; performance; efficiency; stochastic frontier analysis (search for similar items in EconPapers)
JEL-codes: C23 G21 G32 (search for similar items in EconPapers)
Date: 2011-02-07, Revised 2011-02-07
New Economics Papers: this item is included in nep-ara, nep-cis, nep-cwa, nep-eff, nep-hme and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Performance of islamic banks across the world: an empirical analysis over the period 2001-2008 (2017)
Journal Article: Performance of Islamic Banks across the World: An Empirical Analysis over the Period 2001-2008 (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:28695

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