Comparing Effectiveness between Islamic and Conventional Bank during the Current Crises
- *Corresponding Author:
- Afifa Ferhi
Higher Institute of Management Tunis
Tel: +216 22 88 20 79
Fax: +216 74 68 11 03
E-mail: [email protected]
Received October 17, 2015; Accepted February 19, 2015; Published February 25, 2015
Citation: Ferhi A, Chkoundali R (2015) Comparing Effectiveness between Islamic and Conventional Bank during the Current Crises. Intel Prop Rights 3:139. doi: 10.4172/2375-4516.1000139
Copyright: © 2015 Jung YG. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This study is about comparing the efficiency of Islamic and conventional banks. Two methods, such as the stochastic frontier analysis (SFA) and the DEA, are applied to measure the efficiency of both sectors during the current crises. The results show that most of the efficiency scores of Islamic banks are very close to those of the conventional ones. However, comparing the efficiency scores of the IBs with their conventional counterparts and BI per year, we notice that the statistics show that IBs are slightly affected during the current crisis, whereas the CB which are heavily affected by these financial crises.