In recent years there has been an exponential growth in the number of publications related to theory and applications of Data Envelopment Analysis (DEA). Charnes, Cooper, and Rhodes (1978) introduced DEA as a tool for measuring efficiency and productivity of decision making units. DEA has immediately been recognized as a modern tool for performance measurement. Since then, a large and considerable amount of articles has been appeared, including significant breakthroughs in theory and a great portion of works on DEA applications, both public and private sectors, to assess the efficiency and productivity of their activities. Although there have been several bibliographic collections reported, a comprehensive analysis and listing of DEA-related articles covering its first four decades of history is still missing. This paper, thus, aims to report an extensive listing of DEA-related articles including theory and methodology developments and "real" applications in diversified scenarios from 1978 to end of 2016. Some summary statistics of the publications' growth, the most utilized academic journals, authorship analysis, as well as keywords analysis are also provided.

A survey and analysis of the first 40 years of scholarly literature in DEA: 1978–2016

Purpose




This study aims to investigate the performance differences of Islamic and conventional banks in Pakistan by using financial ratios.




Design/methodology/approach




This study analyzed 5 Islamic and 19 conventional banks for the periods of 2007-2014. Two types of analyses were performed – sample t-test and logistic regression. Analysis was also performed on sub-sample considering crisis effects.




Findings




It was found that Islamic banks are relatively better in profitability, efficiency, risk and liquidity management, while conventional banks are superior in asset quality. Higher efficiency of Islamic banks contradicts with previous studies conducted in Pakistan. Probable reasons for this include phenomenal expansion of Islamic banking industry and its broad appeal to customers in Pakistan. Risk management practices of Islamic banks are superior to conventional banks, as Shariah rules restrict pure speculation in monetary terms. Better asset quality of conventional banks is attributed to their recognition and product diversity. During the crisis, Islamic banks were found less profitable than their counterparts.




Research limitations/implications




This study suggests that high operational efficiency of Islamic banks should be converted into technical efficiency by improving human resource, introducing innovative market-oriented products and prudent resource allocations. As operational efficiency does not promise returns in long term, to sustain ongoing phenomenal growth of Islamic banking, management needs to gain customer trust.




Originality/value




This is an original research that compares performance differences across Islamic and conventional banks by using financial ratios.

Performance comparison of Islamic and conventional banks: empirical evidence from Pakistan

Purpose




The purpose of this paper is to examine empirically the efficiency types of Islamic and conventional banks. It seeks to show whether the efficiency level of conventional and Islamic banks significantly differs from each other. In addition, it investigates the influential factors on each type of efficiency.




Design/methodology/approach




The paper utilises the data envelopment analysis in its windows version to estimate the efficiency scores reflecting the time variance and compares between banking models. The paper uses pure technical efficiency (TE) and scale efficiency to achieve the objective of the study. In addition, the panel data technique is adopted to assess the determinants of the efficiency of the banks econometrically.




Findings




The findings of panel regression initially indicate that the pure TE is higher for conventional banks compared to Islamic banks. However, the Islamic banks are more scale efficient than their conventional counterpart. Macro and micro indicators have different impacts on the both types of efficiency. However, the unique factors that show consistent influence on the efficiency types were loans/finance, non-interest income/finance/liquidity and GDP. Furthermore, the determinants are shaped differently for Islamic and conventional banks when the banking model is controlled for.




Originality/value




This paper examines the efficiency types using a unique window analysis approach to examine the types of efficiency with a longitudinal set of data from 1996 to 2011.

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Decomposition of efficiency using DEA window analysis: A comparative evidence from Islamic and conventional banks

In this paper, we use a semi-parametric two-stage model to examine the effect of bank-specific, industry-specific and macroeconomic determinants of bank efficiency. This method, proposed by Simar and Wilson (2007), relaxes several deficiencies of previous two-stage analyses, which regress non-parametric estimates of bank efficiency on exogenous determinants. In particular, we propose a bootstrap procedure to be used in the second stage and we compare the results obtained to the equivalents of a Tobit model. We suggest that the Tobit regressions inaccurately provide insignificant estimates for the effect of bank size, industry concentration and economic investment on bank efficiency, a fact that illustrates the power of the new method. Since the effect of these determinants has been ambiguous in previous literature, this may be a desideratum for future research.

Determinants of bank efficiency: Evidence from a semi-parametric methodology

Doubtful finance is the worst nightmare for banks, but this can be avoided if a bank follows a proper strategy to avoid such kind of finance. Due to the violent political crisis in the country, most of the contemporary studies have excluded Syria from their samples. The present study aims to evaluate the performances of Islamic and conventional banks in Syria through a comparative analysis. A secondary aim of this study is to shed some light on the main factors influencing non-performing finance in both Islamic and conventional banks. This study addressed the entire private banking sector in Syria consisting of 11 conventional banks and 3 full-fledged Islamic banks over the period of 2011-2017. To this end, several financial ratios and macroeconomic variables along with independent sample t-test and panel data regression were employed. The results indicated that the Islamic banks were better in terms of assets quality. Panel data regression manifested that gross domestic product growth, exchange rate, finance to deposit ratio, and operating expenses ratio had a significant impact on non-performing finance. This study provides an alluded picture of Syrian private banking sectors that enables authorities to deliberate on the pertinent macroeconomic NPF determinants such as exchange rate and GDP growth.

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Islamic vs. Conventional Banks in Syria: Analysis on Financial Performances

Purpose – Although there exists a huge pile of literature on the performance of banking sector, a gap exists in developing countries like Pakistan where only limited work has been previously done to evaluate the performance of banking sector. In fact, most of the previous studies are based on traditional ratio analysis. Other studies not only have applied modern techniques of frontier approach like data envelopment analysis (DEA) but also are limited to the measurement and comparison of efficiency scores of various groups of banks. The purpose of this study is to find out the determinant of variation in the performance of banks. Design/methodology/approach – This study computes various elements of performance, including efficiency and effectiveness, and finds out the factors of variation in each component of performance by using the Tobit regression. Findings – Overall performance of Islamic banks was influenced positively by age, capitalization, size, non-markup expenditure, minimum capital requirement a...

Efficiency, effectiveness and performance profile of Islamic and conventional banks in Pakistan

The rise of financial technology (fintech) has been one of the substantial changes in the financial landscape driven by technological advancements and the global financial crisis. This paper employs the systematic literature review (SLR) technique to review recent literature on fintech adoption or acceptance employing the Scopus database (2019–2022). The final reviewed documents are sixteen journal articles published by various journals from different country contexts and theoretical backgrounds. Several inclusion criteria were used to filter those selected documents. One crucial criterion is the journal continuity in the Scopus index, which assures the quality of the published scholarly works. This criterion selection is expected to represent this paper’s novelty. The study reveals various determinants derived from the theories used by the fintech researchers. However, the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) are the most used theoretical foundations. Additionally, trust, financial literacy, and safety are other factors developed by previous researchers and are significant determinants of fintech adoption. Besides, these results suggest that future studies on fintech adoption develop a genuine construct since fintech keeps progressing, and so does the customers’ behavior.

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Factors Affecting Fintech Adoption: A Systematic Literature Review


Purpose
This study aims to synthesize the current literature and present a definition of future smart banking services known as “metaverse banking” as well as to discuss its future potential.


Design/methodology/approach
This paper proposes a suitable definition for metaverse banking that includes the important elements of metaverse banking and sheds light on its impending potential from distinct aspects.


Findings
Metaverse banking is a banking channel actualized through the integration of metaverse and online banking services, enabled by a mix of numerous advanced technologies, that provides customers with synchronous banking services accompanied with 3D experiences in a virtual world. There is a high likelihood in the future that metaverse banking is able to be marketed intensively yet effectively, and incur progressive demands, as well as progress significantly in terms of development.


Practical implications
This study assists bank managers in understanding metaverse banking better and simultaneously makes them realize the metaverse banking’ growth opportunity which can be pursued.


Originality/value
To the best of the authors’ knowledge, this is the first paper to establish a definition for metaverse banking and expound on the upcoming potential of metaverse banking. There is a lack of related literature because this concept is relatively new. This study assists in enriching the concept and providing future research directions.


Towards an understanding of metaverse banking: a conceptual paper


Purpose
This study aims to establish whether the corporate social responsibilities (CSR) practices of Islamic banks are compatible with the sustainable development goals (SDGs) of the United Nations.


Design/methodology/approach
A documentary research method was applied by examining the annual reports of selected Islamic banks from Bangladesh, Indonesia, Pakistan, the UAE and Malaysia for 2020, which coincided with the COVID-19 pandemic.


Findings
The results indicate that Islamic banks discharged various CSR activities and contributed huge funds toward achieving the SDGs of the United Nations. Specifically, the banks prioritized the following CSR sectors: education, health, environmental protection and disaster relief and management. Besides, they provided support to micro and small businesses toward poverty alleviation.


Research limitations/implications
This study examined only CSR reports of the selected Islamic banks for 2020.


Practical implications
The findings have practical implications that may enable Islamic banks across the globe to improve their CSR initiatives, activities and reporting toward realizing the SDGs. They are also helpful to policymakers and regulators for the provisions of policies and regulations to motivate or mandate Islamic banks to effectively improve their CSR practices.


Social implications
CSR practices of Islamic banks can significantly support the SDGs toward mitigating many economic and social problems.


Originality/value
This study applied a relevant but rarely used method to explore the role of CSR practices of Islamic banks in achieving the SDGs.


Mohd Hairul Azrin Hj Besar

Papers

Efficiency, effectiveness and performance profile of Islamic and conventional banks in Pakistan

Factors Affecting Fintech Adoption: A Systematic Literature Review

Towards an understanding of metaverse banking: a conceptual paper

Compatibility of the CSR practices of Islamic banks with the United Nations SDGs amidst COVID-19: a documentary evidence

Standalone risk management committee, risk governance diversity and Islamic bank risk-taking