Conceptually, an Islamic bank has an equity-based capital structure, dominated by shareholders' equity and investment deposits based on profit and loss sharing (PLS). There is no need for capital adequacy regulations if the Islamic banks are structured as pure PLS-based organizations. However,...

In this study, we utilize a nonparametric efficiency measurement approach which combines the Semi-Oriented Radial Measure-Data Envelopment Analysis (SORM-DEA) approach for dealing with negative data (Emrouznejad et al., 2010) with the Slacks-Based Efficiency Measures (SBM) of Tone (2001, 2002)...

Ever since the Asian Financial Crisis, concerns have arisen over whether policy-makers have sufficient tools to maintain financial stability. The ability to predict financial disturbances enables the authorities to take precautionary action to minimize their impact. In this context, the...

Despite substantial structural change and a significant intensification of competition in the UK financial services sector in recent years, the UK banking sector remains relatively under researched. This paper uses a panel data sample covering the main UK banks over the period 1984 to 1995 to...

Using a translog cost function, we first estimate the economies of scale and then calculate the bank-specific scale elasticities for Korean banks over the period 2007Q2 to 2011Q2. We find that all the National banks operate with significant economies of scale, with bank-specific scale...