Islamic Banking Efficiency

Islamic banking is one of the most growing sectors of financial market and gaining popularity in Islamic world. With increasing competition and advances in banking systems Islamic banks must be efficient to reap the benefits of growing demand. This book investigates the efficiency of Islamic banks in Pakistan using non-parametric approach of Data Envelopment Analysis (DEA). The purpose is to look at the financial characteristics that make Islamic banks efficient. Keep in view the financial characteristics of performance, current study apart efficient Islamic banks from those that are found inefficient. The efficiency of Islamic banks is measured in specified input and output variables. Staff cost, fixed assets and total deposits are taken as input variables while total loans, income and liquid assets are taken as output variables.