Islamic Banking

Student: Shishova Elena

Educational Programme: Applied Economics (Master)

Year of Graduation: 2018

This paper examines the effectiveness of Islamic banking. Cost efficiency is considered the most important type of efficiency that firms can achieve by finding a combination of inputs which enable them to produce the desired outputs at minimum costs. This paper uses Data Envelopment analysis for measuring and analyzing the relative cost efficiency of 24 Islamic banking institutions of MENA for the period 2015-2017. The analysis of empirical evidence with the help of software R revealed that the majority of Islamic banking institutions are effective, which can be useful for Russia's further partnership with Islamic countries in order to improve the functioning of the financial system of Russian Federation.

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