Efficiency of Qatari banking industry: an empirical investigation

This paper examines the efficiency of the banking sector in Qatar. The paper utilizes 15 banks comprising Islamic, conventional and foreign banks for the duration of 2007 to 2011.Data Envelopment Analysis (DEA) technique is applied to compute technical efficiency, pure technical efficiency and scal...

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Main Authors: Abdul-Hamid, Abdul Wahab, Haron, Razali
Format: Article
Language:English
English
English
Published: Emerald Group Publishing Limited 2017
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Online Access:http://irep.iium.edu.my/51438/1/51438_Efficiency%20of%20Qatari%20_article.pdf
http://irep.iium.edu.my/51438/2/51438_Efficiency%20of%20Qatari%20_WOS.pdf
http://irep.iium.edu.my/51438/3/51438_Efficiency%20of%20Qatari%20_SCOPUS.pdf
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spelling my.iium.irep.514382017-06-14T07:08:27Z http://irep.iium.edu.my/51438/ Efficiency of Qatari banking industry: an empirical investigation Abdul-Hamid, Abdul Wahab Haron, Razali HG Finance HG4001 Financial management. Business finance. Corporation finance. This paper examines the efficiency of the banking sector in Qatar. The paper utilizes 15 banks comprising Islamic, conventional and foreign banks for the duration of 2007 to 2011.Data Envelopment Analysis (DEA) technique is applied to compute technical efficiency, pure technical efficiency and scale efficiency. Also, Malmquist Productivity Index is used to identify the sources of productive efficiency of the banks. The results suggest that, Qatari banks are operating below optimum performance and thus there is still room for improvement. While conventional banks are the most efficient in Qatar in terms of technical and pure technical efficiencies, Islamic banks are most efficient in terms of scale efficiency. Besides, pure technical inefficiency dominated scale inefficiency in the Qatari banking sector. Moreover, as compared to the Islamic banks, conventional and foreign banks recorded a reduction in average technical efficiency during the duration of the 2008/2009 global financial crisis. In terms of productivity progress, all the Qatari banks were experiencing a decline in productivity mainly attributed to less technological innovation in the banking sector of Qatar. Most of the banks in Qatar do not have published data before 2007 and after 2011. There is less technological innovation in the banking sector of Qatar. Hence, bank managers in Qatar should focus on educating customers about modern banking technologies and other innovative banking services in Qatar. This study is a pioneering effort in the application of Data Envelopment Analysis and Malmquist Productivity Index to study about the banking sector in Qatar. Emerald Group Publishing Limited 2017 Article REM application/pdf en http://irep.iium.edu.my/51438/1/51438_Efficiency%20of%20Qatari%20_article.pdf application/pdf en http://irep.iium.edu.my/51438/2/51438_Efficiency%20of%20Qatari%20_WOS.pdf application/pdf en http://irep.iium.edu.my/51438/3/51438_Efficiency%20of%20Qatari%20_SCOPUS.pdf Abdul-Hamid, Abdul Wahab and Haron, Razali (2017) Efficiency of Qatari banking industry: an empirical investigation. International Journal of Bank Marketing, 35 (2). pp. 298-318. ISSN 0265-2323 http://www.emeraldinsight.com/loi/ijbm 10.1108/IJBM-07-2016-0090
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
English
topic HG Finance
HG4001 Financial management. Business finance. Corporation finance.
spellingShingle HG Finance
HG4001 Financial management. Business finance. Corporation finance.
Abdul-Hamid, Abdul Wahab
Haron, Razali
Efficiency of Qatari banking industry: an empirical investigation
description This paper examines the efficiency of the banking sector in Qatar. The paper utilizes 15 banks comprising Islamic, conventional and foreign banks for the duration of 2007 to 2011.Data Envelopment Analysis (DEA) technique is applied to compute technical efficiency, pure technical efficiency and scale efficiency. Also, Malmquist Productivity Index is used to identify the sources of productive efficiency of the banks. The results suggest that, Qatari banks are operating below optimum performance and thus there is still room for improvement. While conventional banks are the most efficient in Qatar in terms of technical and pure technical efficiencies, Islamic banks are most efficient in terms of scale efficiency. Besides, pure technical inefficiency dominated scale inefficiency in the Qatari banking sector. Moreover, as compared to the Islamic banks, conventional and foreign banks recorded a reduction in average technical efficiency during the duration of the 2008/2009 global financial crisis. In terms of productivity progress, all the Qatari banks were experiencing a decline in productivity mainly attributed to less technological innovation in the banking sector of Qatar. Most of the banks in Qatar do not have published data before 2007 and after 2011. There is less technological innovation in the banking sector of Qatar. Hence, bank managers in Qatar should focus on educating customers about modern banking technologies and other innovative banking services in Qatar. This study is a pioneering effort in the application of Data Envelopment Analysis and Malmquist Productivity Index to study about the banking sector in Qatar.
format Article
author Abdul-Hamid, Abdul Wahab
Haron, Razali
author_facet Abdul-Hamid, Abdul Wahab
Haron, Razali
author_sort Abdul-Hamid, Abdul Wahab
title Efficiency of Qatari banking industry: an empirical investigation
title_short Efficiency of Qatari banking industry: an empirical investigation
title_full Efficiency of Qatari banking industry: an empirical investigation
title_fullStr Efficiency of Qatari banking industry: an empirical investigation
title_full_unstemmed Efficiency of Qatari banking industry: an empirical investigation
title_sort efficiency of qatari banking industry: an empirical investigation
publisher Emerald Group Publishing Limited
publishDate 2017
url http://irep.iium.edu.my/51438/1/51438_Efficiency%20of%20Qatari%20_article.pdf
http://irep.iium.edu.my/51438/2/51438_Efficiency%20of%20Qatari%20_WOS.pdf
http://irep.iium.edu.my/51438/3/51438_Efficiency%20of%20Qatari%20_SCOPUS.pdf
http://irep.iium.edu.my/51438/
http://www.emeraldinsight.com/loi/ijbm
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score 13.211869