Abdul Majid, Mariani (2010) The Input Requirements of Conventional and Shariah compliant Banking. The International Journal of Banking and Finance, 7 (1). pp. 51-78. ISSN 1617-722

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Abstract

Islamic banking activities are limited within the scope of shari’ah which is within the scope of socially responsible and ethical banking activities, different from that based on interest-based banking. This paper attempts to measure the input data required by shari’ah-compliant banking in comparison with conventional banking to estimate their relative efficiencies and economies of and returns to scale. Cost and output distance functions were estimated for a sample of banks in 10 countries which operate both types of banking. The results showed that shari’ah-compliant banking has higher input requirements relative to interest based banking, but exhibit superior average efficiency only in Malaysia but inferior average efficiency in cross-country analysis. There is little evidence of differences in economies/returns to scale between shari’ah and conventional banks.

Item Type:	Article
Uncontrolled Keywords:	Islamic Banking, Stochastic Frontier Analysis, Efficiency, Frontier Analysis, Conventional Banks.
Subjects:	H Social Sciences > HG Finance
Divisions:	School of Economics, Finance & Banking
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	25 Oct 2018 02:29
Last Modified:	25 Oct 2018 02:29
URI:	https://repo.uum.edu.my/id/eprint/25060

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