Do Islamic and conventional banks have the same technology?

Ghannouci, Walid and Fiordelisi, Franco and Molyneux, Phil and Radić, Nemanja (2012) Do Islamic and conventional banks have the same technology? Centre for EMEA Banking, Finance and Economics Working Paper Series, 2012 (34). pp. 1-24.

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Abstract

Is there a technology gap between Islamic and conventional banks? Do Islamic and conventional banks have different cost efficiency levels? We show that conventional and Islamic banks have similar mean (aggregate) cost efficiency levels in the MENA area and there is no technology gap between the two types of banks. At the country level, Islamic banks are more cost efficient than conventional banks in Indonesia, Pakistan, Turkey and United Arab Emirates, and less efficient in Bangladesh, Kuwait, Malaysia and Tunisia. We analyse a very large sample of banks in twelve MENA and South East Asian countries between 2000 and 2006 and we use the meta-frontier approach to account for the sample heterogeneity.

Item Type: Article
Uncontrolled Keywords: Centre for EMEA Banking, Finance and Economics Working Paper Series; Islamic banking; cost efficiency; meta-frontiers; technology gap ratios
Subjects: 300 Social sciences > 330 Economics
Department: Guildhall School of Business and Law
Depositing User: Mary Burslem
Date Deposited: 17 Apr 2015 10:04
Last Modified: 20 Apr 2015 11:32
URI: http://repository.londonmet.ac.uk/id/eprint/393

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