Comparative Study on the Efficiency of Islamic Banks and Conventional Banks During the COVID-19 Outbreak

This study investigates the impact of the COVID-19 pandemic on the efficiency of Islamic and conventional banks, focusing on Middle Eastern and North African (MENA) countries. Analyzing a sample of 134 banks across 10 MENA nations from 2011 to 2021, we evaluate technical efficiency scores (including...

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Bibliographic Details
Main Authors: Naima Lassoued, Imen Khanchel, Wiem Saidani
Format: Article
Language:English
Published: SAGE Publishing 2025-01-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440241309726
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Summary:This study investigates the impact of the COVID-19 pandemic on the efficiency of Islamic and conventional banks, focusing on Middle Eastern and North African (MENA) countries. Analyzing a sample of 134 banks across 10 MENA nations from 2011 to 2021, we evaluate technical efficiency scores (including global technical efficiency, pure technical efficiency, and scale efficiency) utilizing Data Envelopment Analysis (DEA) followed by Tobit random effect regression. Our results show that conventional banks exhibited superior technical efficiency compared to Islamic banks during the COVID-19 crisis. Furthermore, these findings were consistently validated through various robustness tests, confirming the reliability of the results.
ISSN:2158-2440