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Comparing the Efficiency of Islamic Banks of Pakistan and Malaysia: by using the Dea Approach

Author Affiliations

  • 1Department of Business and Economics, FURC, PAKISTAN

Res. J. Recent Sci., Volume 4, Issue (6), Pages 45-52, June,2 (2015)


The purpose of this paper is to do compare the efficiency of Islamic banks of Pakistan and Malaysia. Data Envelopment Analysis (DEA) model is used to determine the technical and cost efficiency of Pakistani Islamic banks and Malaysian Islamic banks. After analysing the data of 20 Islamic banks, it is concluded that Cost efficiency of Pakistani Islamic banks is better than Malaysian Islamic banks. Whereas, according to the technical efficiency Malaysian Islamic banks are working better than Pakistani Islamic banks. So, Pakistani Islamic banks can acquire improvement in the resource utilization process and can reach the level of efficient banks. Malaysian Islamic banks should improve their cost efficiency to produce optimum outputs.


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