Comparing Effectiveness between Islamic and Conventional Bank during the Current Crises

Afifa Ferhi and Ridha Chkoundali

This study is about comparing the efficiency of Islamic and conventional banks. Two methods, such as the stochastic frontier analysis (SFA) and the DEA, are applied to measure the efficiency of both sectors during the current crises. The results show that most of the efficiency scores of Islamic banks are very close to those of the conventional ones. However, comparing the efficiency scores of the IBs with their conventional counterparts and BI per year, we notice that the statistics show that IBs are slightly affected during the current crisis, whereas the CB which are heavily affected by these financial crisis.