This study investigated the case qualification scores of Islamic banks of Pakistan for the period 2006 to 2009. Non-parametric DEA was applied on the info collected from the annual reports of banks. Both CRS and VRS specification were applied to number scale efficiency under input-orientation. The results suggested the Dawood Islamic bank was the or so scale efficient Islamic bank. Also the findings suggested that the Islamic banks had the highest baseborn scale efficiency scores in 2007. This utilisation is the genuinely first effort to compute the scale efficiency of Pakistani Islamic banking sector.
Key Words: scale Efficiency, Data natural enclosure Analysis, and Islamic Banks.
INTRODUCTION
Islamic banking has been in existence since 1970s. Islamic banking form is different from the naturalized banking system in two major ways (Olson and Zoubi, 2008). Firstly, Islamic banking is interest free banking based on Islamic law ( sharia) and Secondly, Islamic banking follows risk free sharing. So, when financial units or pious Muslims deficiency to investment according to sharia principles, they use the services of Islamic banking. Thus when one wants to expend the Islamic financing services, he must be mocking the efficiency of Islamic banks .
Several techniques atomic number 18 available in literature to conduct the performance analysis. Mostly ratio analysis is utilise to determine the performance of Islamic banks of Pakistan. But there are some shortcomings allied with this technique e.g. they are useful 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 few 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.
Research work on Islamic banking of Pakistan is still in preliminary stage. The...If you want to get a full essay, order it on our website: Ordercustompaper.com
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