Measuring the banking efficiency in Algeria using bootstrapped DEA method (BDEA)‎ : a comparative study between Islamic and conventional banks

Abstract EN

This study evaluates and compares the efficiency of Islamic banks in Algeria, despite their small size against conventional peers based on the non-parametric approach Bootstrapped Data envelopment analysis (BDEA) models during the period 2016-2019.

Our findings concluded that all ten banks under evaluation are technically inefficient, while Islamic banks in average performed less efficiently than their conventional counterparts.

Technically, results suggested the importance to removed input excess as a main source of banking inefficiency, with increasing Islamic banks size, which means Islamic windows should be encouraged as a strategy to improve the Algerian financial market.