English abstract
The objective of the research was to find out the most important factors affecting the technical efficiency of Islamic banks through estimating a standard model of the technical competency determinants of a group of Islamic banks. The research was based on the inductive, analytical and descriptive approach. The research sample was a group of Islamic banks that published their financial statements from 2003 to 2009 and included 18 Islamic banks from 12 Islamic countries. The technical efficiency was measured using Data Envelopment Analysis (DEA), which allowed the focusing on the input and output sides in the efficiency of banks. A topology regression analysis was also conducted to determine the factors influencing the levels of banking efficiency. The results showed that the level of technical efficiency of Islamic banks is high as it reached 91% as a general average, which means that banks are able to convert their inputs to outputs with the best performance without wasting a lot of available resources. The results also showed a direct impact on the Bank's size and its level of efficiency. Moreover, the results mentioned that the greater the total assets are, the higher the levels of technical efficiency will be. They also showed that the recent global financial crisis has adversely affected the efficiency of Islamic banks. The study recommended that banking management should monitor the continuous development of the regulatory and banking controls that are necessary to ensure good risks management. The research demonstrated these controls' strong impact on the levels of banking performance in addition to following up the ongoing review necessary for them. Furthermore, the research highlighted that the Islamic banking administrations should pay attention to achieving high rates of yields on assets to ensure that the deposits of individuals and institutions are obtained , which improve the performance and efficiency of the Islamic Banks.
