Islamic banks efficiency in Sudan and Malaysia: a comparison study

This paper aims to investigate the Islamic banks efficiency in Sudan and Malaysia. Two analytical techniques were used: the data envelopment analysis (DEA), and the multivariate regression. The results indicated that there is an increase in demand for Islamic banking services in both Sudan and Malaysia. An increasing trend in efficiency for Sudanese and Malaysian Islamic banks is observed. The regression results indicated that the bank market structure affects the banks negatively through the bank deposits and positively through the bank size. In terms of risk structure, it is obvious that the higher lending intensity results into higher risk which leads to inefficiency. The economic conditions have a significant effect on banks efficiency especially for the inflation rate. The growth in country\u27s GDP contributes positively in banks performance to be efficient. In the other side the population density has a little negative effect on efficiency