The efficiency patterns of Islamic banks during the global financial crisis: The case of Bangladesh
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The efficiency patterns of Islamic banks during the global financial crisis : The case of Bangladesh. / Asmild, Mette; Kronborg, Dorte; Mahbub, Tasmina; Matthews, Kent.
In: Quarterly Review of Economics and Finance, Vol. 74, 2019, p. 67-74.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - The efficiency patterns of Islamic banks during the global financial crisis
T2 - The case of Bangladesh
AU - Asmild, Mette
AU - Kronborg, Dorte
AU - Mahbub, Tasmina
AU - Matthews, Kent
PY - 2019
Y1 - 2019
N2 - The Global Financial Crisis (GFC) has refocussed attention on Islamic banking as an alternative business model for banking. Studies of the performance of Islamic banks during the Global Financial Crisis have typically used one-step or two-step methods based on Data Envelopment Analysis (DEA) with mixed results. But such techniques are limited by the inability to identify the nature and structure of the inefficiencies with respect to the improvement potentials on different variables. In this paper we apply Multi-directional Efficiency Analysis (MEA) which facilitates an understanding of the differences in inefficiency patterns for a set of banks in Bangladesh from 2001 to 2015. We confirm the consensus finding that Islamic banks outperformed conventional commercial banks during the GFC period but additionally identify differences in inefficiency from specific variables. Such information can provide important insights to managers and regulators.
AB - The Global Financial Crisis (GFC) has refocussed attention on Islamic banking as an alternative business model for banking. Studies of the performance of Islamic banks during the Global Financial Crisis have typically used one-step or two-step methods based on Data Envelopment Analysis (DEA) with mixed results. But such techniques are limited by the inability to identify the nature and structure of the inefficiencies with respect to the improvement potentials on different variables. In this paper we apply Multi-directional Efficiency Analysis (MEA) which facilitates an understanding of the differences in inefficiency patterns for a set of banks in Bangladesh from 2001 to 2015. We confirm the consensus finding that Islamic banks outperformed conventional commercial banks during the GFC period but additionally identify differences in inefficiency from specific variables. Such information can provide important insights to managers and regulators.
KW - Bangladesh
KW - Islamic banks
KW - Multi-directional Efficiency Analysis (MEA)
U2 - 10.1016/j.qref.2018.04.004
DO - 10.1016/j.qref.2018.04.004
M3 - Journal article
AN - SCOPUS:85046152507
VL - 74
SP - 67
EP - 74
JO - Quarterly Review of Economics and Finance
JF - Quarterly Review of Economics and Finance
SN - 1062-9769
ER -
ID: 225670411