Islamic bank efficiency compared to conventional banks during the global crisis in the GCC region

Faisal Alqahtani, David G. Mayes, Kym Brown

Research output: Contribution to journalArticleResearchpeer-review

21 Citations (Scopus)

Abstract

The efficiency of Islamic and conventional banks in the GCC region is investigated using DEA and SFA before, during and after the global financial crisis (GFC). Results suggest that during the GFC, Islamic banks were more cost efficient in comparison to conventional banks. In addition, Islamic banks closed the inherent gap in terms of profit efficiency to an insignificant level compared to the period prior to the GFC and through the period under investigation. Conversely, during the period subsequent to the GFC, Islamic banks suffered more than conventional banks in terms of profit efficiency and lost their cost efficiency superiority.

Original languageEnglish
Pages (from-to)58-74
Number of pages17
JournalJournal of International Financial Markets, Institutions and Money
Volume51
DOIs
Publication statusPublished - Nov 2017

Keywords

  • Efficiency performance
  • Global financial crisis (GFC)
  • Gulf Cooperation Council (GCC)
  • Islamic banking

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