This paper presents a
comprehensive literature review and classification scheme to examine the
technical efficiency of Islamic banks. It primarily focuses on two
methodological approaches: parametric and nonparametric. Drawing on more than
100 articles on the technical efficiency of both conventional and Islamic
banks, this study identifies key factors influencing efficiency levels.
Articles are classified based on various criteria, including journal source,
publication date, paper type, study context, bank nature, efficiency
measurement approach, selected inputs and outputs, determinants of efficiency,
and empirical findings. The review highlights that research on the technical
efficiency of Islamic banks remains less developed compared to conventional
banking. Several key findings are discussed, shedding light on the current
state of knowledge in this field.
