The Efficiency’s Analysis of Islamic Banks in Mena Countries: Trends and Perspectives

SGHAIER Asma ., LAHDHIRI Manelle .

Abstract


Performance has a central role in the control mechanisms of the banking system. Bank's performance has been the subject to numerous studies and several of them have examined it on the basis of the comparison between conventional banks and Islamic banks. The purpose of this work is the conducting of an empirical analysis of the efficiency and profitability of banks in the MENA region through the comparison of Islamic banks to conventional ones.

 In our study, three-dimension-analysis will be introduced. The first is based on the comparison between Islamic banks and conventional banks in terms of banking performance. The second deals with the impact of bank size on performance. The third dimension examines the impact of recent financial crisis on the banking landscape in the MENA region. Recently, the comparisons have shown that the efficiency scores of conventional banks are better than those of Islamic banks in terms of techniques. Besides, this is the same with regard to the cost and allocation level. (Shahid Rehman Niazi and Raoof (2010).

This paper is divided into two parts. In the first one, we will state the literature review, the research methodology and our assumptions. In the second part, we will present our results and interpretations.

Keywords


Bank profitability, profitability ratios, MENA Islamic Banks, Conventional Banks.

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