Journal of Research in Economics and International Finance

Journal of Research in Economics and International Finance (JREIF) (ISSN: 2315-5671) Vol. 4(2) pp. 27 - 33, February, 2015
DOI : http://dx.doi.org/10.14303/jrief.2015.100
Copyright © 2015 International Research Journals

 

Full Length Research Paper

Islamic and conventional banks: Efficiency and stability during the current crises

Afifa Ferhi*1 and Ridha Chkoudali2

1Higher Institute of Management of Tunis

2Faculty of Economics and Management, University of Nabeul, Tunisia

*Corresponding author email address: Ferhi_afifa1983@yahoo.fr

ABSTRACT

The aim of this study is to compare the efficiency and stability of Islamic and conventional banks in 14 MENA countries over the period 1990-2010 using both the static frontier analysis (SFA) and the DEA. The empirical results show what is not considered Islamic banks as a financial system that are characterized by efficiency superior to conventional banks.

Keywords: Efficiency, Stability, Islamic banks, Conventional banks, DEA, Stochastic frontier analysis (SFA).

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