Chapter

Allocative and Technical Inefficiency in Sudanese Islamic Banks: An Empirical Investigation

Abd Elrhman Elzahi Saaid

in Islamic Perspectives on Wealth Creation

Published by Edinburgh University Press

Published in print May 2005 | ISBN: 9780748621002
Published online March 2012 | e-ISBN: 9780748653096 | DOI: http://dx.doi.org/10.3366/edinburgh/9780748621002.003.0009
Allocative and Technical Inefficiency in Sudanese Islamic Banks: An Empirical Investigation

Show Summary Details

Preview

This chapter examines the allocative and technical inefficiency of the Sudanese Islamic banks through the stochastic frontier approach. While the studies of efficiency using frontier approaches were introduced long ago, their application in evaluating the performance of banks did not start until Sherman and Gold (1985) initiated their study. They applied the frontier approach to the banking industry by focusing on the operating efficiency of the branches of a savings bank. Since then, several studies have been conducted using the frontier approach to measure the efficiency in banking. The frontier approach represents a very powerful tool, as it allows individuals with very little institutional knowledge or experience to identify the best banking practices within the industry.

Keywords: allocative inefficiency; technical inefficiency; Sudanese Islamic banks; stochastic frontier approach; efficiency in banking

Chapter.  3994 words. 

Subjects: Society and Culture

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.