Efficiency in Islamic Banking: an Empirical Analysis by Using DEAW

Islamic banking in Iran as an important part of Islamic financial and economic system, aims to provide basic needs and increase public welfare. Therefore, Islamic banks subjected to special restrictions as compared to conventional banks. Efficiency is one of the important issues that supervisory departments and also customers which use the services of these financial institutions in addition to the bank managers are interested in. The purpose of this research is to study the efficiency of Melli bank branches in Ramsar and Tonekabon, using data envelopment analysis window (DEAW). The method of window data envelopment based on changing efficiency and is useful to study unit operation trend. Efficiency of Melli bank branches in Ramsar and Tonekabon was calculated by using DEAW during years 2007-2011.The findings show that the branches 17, 2, and 11 have the highest ranks, respectively.
On the contrary, branches 5, 16 and 6 have 17th, 16th, and 15th ranks, respectively. Results also show that operation trends of more than half of the branches of Melli bank in Ramsar and Tonekabon are not efficient.