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.
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