Yes / The current study proposes a novel 2-Dimensional Fuzzy Monte-Carlo Frontier Analysis to estimate and compare the level of efficiency for a sample of 49 Islamic Banks across 25 countries worldwide over the period 2013-2021. Additionally, in the second stage, we propose a bootstrapped robust regression approach to comprehensively examine the determinants of efficiency. Our results show that there is heterogeneity in the level of efficiency within the Islamic banking sector. Furthermore, we find that the Islamic banks in the sample experienced an improvement in efficiency over the examined period. Finally, we find that bank size, bank liquidity (measured by the ratio between net loans and gross loans), and bank risk (proxied by the ratio between loan loss reserves and gross loans) have a significant and positive impact on Islamic bank efficiency. Policy implications based on our findings are provided.
| Identifer | oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/19962 |
| Date | 09 August 2024 |
| Creators | Tan, Yong, Azad, M.A.K., Mamede, A., Wanke, P.F. |
| Source Sets | Bradford Scholars |
| Language | English, English |
| Detected Language | English |
| Type | Article, Published version |
| Rights | © The Author(s) 2024. Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/., CC-BY |
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