Comparing the Efficiency of Charity Loan Agreement and Cooperative Agreements in Free of Interest Banking System Using Data Enveloping Analysis Approach " Case Study: Mellat Bank Branches in Kermanshah province"

Study of different Islamic agreements efficiency in free of interest banking System through modern scientific approaches is of outmost importance. In this paper attempt has been made to study and compare the efficiency of charity loan agreement and cooperative agreements by DEA approach in branches of Mellat bank in Kermanshah province as case study. In this direction, the data related to five variables as input and three variables as output has been processed and by using of Deap2 soft ware the level of efficiency in charity loan agreement and Cooperative Agreements in 52 branches of aforesaid bank has been estimate. The finding of this research states that in the case of estimating of charity loan facilities, 46 percent of branches stay on the efficiency border, so they are efficient and in the case of estimating of cooperative facilities, 35 percent of branches stay on the efficiency border. Moreover, estimated model shows that under the condition of variable return to scale the average technical efficiency for charity loan facilities in branches is equal to 81 percent and for cooperative facilities in branches is equal to 74 percent. Also the results indicate economies of scale because most of the branches own increasing return to scale for both charity loan facilities and cooperative facilities.