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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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 |
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HG Finance HG4001 Financial management. Business finance. Corporation finance. Abdul-Hamid, Abdul Wahab Haron, Razali Efficiency of Qatari banking industry: an empirical investigation |
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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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1643613952915013632 |
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13.211869 |