Financial Differences and Similarities of Islamic Banks: A Study on Qismut Countries

Yıldırım, İsmail

doi:10.17261/pressacademia.2015211617

Cited by 7 publications

(7 citation statements)

References 33 publications

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“…Bahrini (2017) also found that pure technical efficiency was less than scale efficiency in Islamic banks. Contrarily, Yildrim (2017) reported scale efficiency score to be lower than pure technical efficiency.…”

Section: Literature Reviewmentioning

confidence: 98%

Technical Efficiency of Islamic Banks in Selected African Countries

2021

IJSWR

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The size of banking market for Islamic banks in Africa is relatively small. This poses serious threat to the level of competition with conventional ones unless they are technically efficient. Unfortunately, available evidences have shown that Islamic banks in Africa are technically inefficient, though no consensus have been reached on the source(s) of such inefficiency. Therefore this study investigated the technical efficiency of Islamic banks in Africa with particular emphasis pure technical and scale efficiencies. Convenient sampling technique was used to select a sample of 36 Islamic banks for eight (8) years from 2012 to 2019. Data were collected for input and output variables from annual reports of the banks. Data Envelopment Analysis (DEA) was used to analyse the data by estimating the efficiency scores for the banks. The efficiency scores of 0.764 (ar<1), 0.850 (ar<1) and 0.896 (ar<1) for OTE, PTE and SE respectively indicate that on average, the selected banks were technically inefficient. The study concluded that Islamic banks in Africa were technically inefficient due mainly to pure technical inefficiencies such as poor managerial performance. The study then recommended employment and training of staff with requisite skills and knowledge of Islamic banking and finance, to enhance managerial performance and boost their technical efficiency of the banks.

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Section: Literature Reviewmentioning

confidence: 98%

Technical Efficiency of Islamic Banks in Selected African Countries

2021

IJSWR

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“…This means that inefficiency resulted majorly from pure technical inefficiency. In another study, Yildrim (2017) found that Islamic banks in Qatar, Indonesia, Saudi Arabia, Malaysia, UAE and Turkey (QISMUT countries) failed in the area of managerial efficiency as they were also not able to produce on sufficient scale. Effendi (2016) reported high technical efficiency for Islamic rural banks in Indonesia.…”

Section: Literature Reviewmentioning

confidence: 99%

Comparative Analysis of Technical Efficiency of Islamic Banks in Selected Low-Income Countries of Africa and Asia

Jimoh

Ijaiya

Attah

et al. 2022

JBMA

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Islamic banks in Africa and Asia have been characterised by some technical inefficiencies. The sources (managerial issues or scale of operation) of these inefficiencies still remain a problem of empirical investigation since mixed reports have been given in that regard. This study therefore investigated the sources of inefficiencies by decomposing technical efficiencies of the banks and comparing the components of Islamic banks in the low-income countries of Africa and Asia. Data were collected from annual reports of the selected banks and analysed using both descriptive and inferential statistical tools. Data Envelopment Analysis (DEA) was conducted to estimate the pure technical and scale efficiencies of the banks. The study found that the inefficiency attributable to all the selected banks were due to pure technical efficiency (0.876), which was lower than the mean value of scale efficiency (0.917). That is, the inefficiencies were caused largely by managerial problems rather than operating scale. It was also found that Islamic banks in Asia were more technically efficient than those from Africa in terms of pure technical (0.920>0.827) and scale efficiencies (0.934>0.902). The study concludes that managerial issues such as insufficient competent staff, poor monitoring and so on were the causes of low efficiency attributed to Islamic Banks in Africa. It was thus recommended that Islamic banks in Africa should employ staff members who are competent with requisite knowledge of Islamic finance to improve the pure technical and overall efficiency of the banks.

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“…The results of the ROI ratio normality test showed a statistical value test of 0.274 with a significant probability of 0.125 and a value above 0.05 or value of α> 0.05. This means that the H0 is not rejected or the ROI variable is normally distribute [29].…”

Section: Independent Samples Testmentioning

confidence: 99%

Financial Performance Analysis of Sharia Banks in Indonesia and Malaysia Using Dupont System

Azizah¹,

Nengzih²

2021

Saudi J Econ Fin

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The purpose of this research is to analyze and determine the financial performance of Islamic banking in Indonesia and Islamic banking in Malaysia using the Dupont System, represented by the ratio of NPM (Net Profit Margin), TATO (Total Asset Turnover), ROI (Return On Investment), MER (Multyplyer Equity). Ratio) and ROE (Return On Equity). This research uses quantitative data, using secondary data sources by using library studies and library research using different test T in each ratio. Based on the results of the study, it shows that there are significant differences in the ratio of NPM, TATO, ROI and ROE. In contrast, for the MER ratio, there is no significant difference between Islamic banking in Indonesia and Malaysia.

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Financial Differences and Similarities of Islamic Banks: A Study on Qismut Countries

Cited by 7 publications

References 33 publications

Technical Efficiency of Islamic Banks in Selected African Countries

Technical Efficiency of Islamic Banks in Selected African Countries

Comparative Analysis of Technical Efficiency of Islamic Banks in Selected Low-Income Countries of Africa and Asia

Financial Performance Analysis of Sharia Banks in Indonesia and Malaysia Using Dupont System

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