COMPARISON OF EFFICIENCY BETWEEN PURE ISLAMIC BANKS AND ISLAMIC BANK WINDOWS AND ROLE OF ISLAMIC BANKING IN AGRICULTURE SECTOR

This paper is an attempt to compare the efficiency between pure Islamic banks and Islamic bank windows of conventional banks. It also explains the role of Islamic banks in agriculture sector. Data envelopment analysis (DEA) was used to find out the efficiency. The results of this study suggest that overall efficiency of Islamic banking is increasing with the passage of time. The cost, allocative, scale and technical efficiencies of pure Islamic banks are higher than Islamic banking windows of conventional banks; however, income efficiency is higher in the case of Islamic bank windows. In agriculture sector, Islamic banking provides equal opportunities to all farm size groups with its unique products. Especially the small farmers can benefit from the products of to enhance the productivity of their farms.