Strategic Studies of Jurisprudence and Law

Strategic Studies of Jurisprudence and Law

Calculation of Productivity, Efficiency and Effectiveness in Islamic Banking (Case Study: TOSE’E TA’AVON Bank)

Document Type : research

Authors
Hasan sharifi 1
Kambiz Hojabrkiani 2
Farid Askari 3
1 PhD student in the Department of Economics, Abhar Branch, Islamic Azad University, Abhar, Iran
2 Professor of Economics Department, Research Sciences Unit, Islamic Azad University, Tehran, Iran.
3 Assistant Professor of Department of Economics, Abhar Branch, Islamic Azad University, Abhar, Iran.
10.22034/ejs.2024.426619.1612
Abstract
Background and Aims: Evaluating performance of banks is important because it helps to improve their performance, reduce financial risks and choose the most appropriate growth and development strategies. To evaluate the performance of banks, it is necessary to measure productivity, efficiency and effectiveness. so, aforementioned indicators were measured in the TOSE’E TA’AVON Bank.
Method and Material: To calculate the productivity, the marginal cost function method and the two-stage efficiency approach with Data Envelopment Analysis (DEA) were used. The difference between efficiency and productivity was also considered as effectiveness. Time period is the monthly information of the bank from 2011-2022.
Ethical Considerations:In writing the article, the originality of the texts, honesty and trustworthiness have been respected.
Findings: Two-stage efficiency was obtained positively. Productivity has fluctuated and, in some years, it has been negative and in some positive and the effectiveness has fluctuated between -0.55 and 0.91.
Conclusion: The process of productivity and efficiency in the TOSE’E TA’AVON Bank has been improving in recent years, but the improvement of effectiveness requires the attention of the bank's policymakers to improve the skills and expertise of human resources, improve electronic infrastructure, and improve risk management.
Keywords
productivity
efficiency
effectiveness
TOSE’E TA’AVON Bank
Subjects
Strategic Studies of Jurisprudence and Law
Volume 5, special issue - Serial Number 5
Studies of economic jurisprudence
Summer 2023
Pages 1099-1118