What is it about?

This paper studies about the performance of the banking sector in Qatar using 15 banks during 2007 to 2011. The categories of banks include Islamic, conventional and foreign banks. A technique known as Data Envelopment Analysis (DEA) is used in order to determine the level of performance of the banking industry. The study found that in general the performance of banks in Qatar is below ideal level though there are opportunities for improvement. Besides, there is managerial underperformance in the Qatari banking sector. Conventional banks are found to be the best in terms of performance of management while Islamic banks are the best in terms of managing the level of operations. Moreover, the study found that during the 2008/2009 global financial crisis, Islamic banks are found to be utilizing their resources properly as compared to the conventional and foreign banks in Qatar. Finally, it is discovered that all the Qatari banks are experiencing a decline in productivity because of less technological innovation in the banking sector of Qatar from 2007 to 2011.

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Why is it important?

This study is a pioneering effort in the application of two techniques known as Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) all together in a single study to assess the banking sector of Qatar.

Perspectives

In recent years Qatar banks are among the most efficient in the GCC and MENA region. This is contrary to the findings of this study. There is therefore the need for further research in this area with more recent data to reaffirm the performance of banks in Qatar.

Abdul-Hamid Abdul-Wahab

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This page is a summary of: Efficiency of Qatari banking industry: an empirical investigation, The International Journal of Bank Marketing, April 2017, Emerald,
DOI: 10.1108/ijbm-07-2016-0090.
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