What determines the Social Efficiency of Islamic Banking Investment Portfolio?

Rukhsana Kalim & Noman Arshed

Article Details

What determines the Social Efficiency of Islamic Banking Investment Portfolio?

Authors:

Rukhsana Kalim & Noman Arshed

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.8 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2018

Document Language:

English

Document ID (Org No.):

2001947791

pISSN:

2075-6291

Keywords:

Abstract:

 While operating in competition with conventional banks, Islamic banks need to push up the returns to depositors so that they could attract funds. If an Islamic bank optimizes its investment portfolio to maximize deposit returns, it might have increasing access to the supply of deposit funds. Unlike other studies, which consider return to deposit as a cost, this study considers it as means to public benefit. It has used all 53 known full-fledged Islamic banks operating in Pakistan, Malaysia and MENA countries in a panel stochastic frontier analysis for data between 2001 and 2015 and confirmed that Islamic banks are approximately 26% optimized. Muḍārabah investment presents itself as the best candidate for boosting the efficiency. Also, if the market is favorable in terms of banking profits, market return rate of investment, banking sector development and risks, then efficiency could be increased.

Article Details

What determines the Social Efficiency of Islamic Banking Investment Portfolio?

Authors:

Rukhsana Kalim & Noman Arshed

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.8 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2018

Document Language:

English

Document ID (Org No.):

2001947791

pISSN:

2075-6291

Mushārakah

Muḍārabah

Ijārah

Murābaḥah

Panel Stochastic Frontier Model

Islamic Banking

Efficiency

Issues

Article Details

Authors: Rukhsana Kalim & Noman Arshed

Publisher: Riphah International University

Journal: Journal of Islamic Business and Management Vol.8 Issue 2, pp.0-0

Document Type: Article

Publication Date: 1/2018

Document Language: English

Document ID (Org No.): 2001947791

pISSN: 2075-6291

Issues

Authors:

Rukhsana Kalim & Noman Arshed

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.8 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2018

Document Language:

English

Document ID (Org No.):

2001947791

pISSN:

2075-6291