Abstract:
This study aims to explore the determinants of efficiency at both macro and micro level
is Islamic Banks. The Profitability measures i.e Return on Assets (ROA) and Return on
Equity (ROE) are used to determine the affect of determinants on efficiency &
performance of Islamic Banks. The technological changes and advancement over the
time and changes in productivity of macro and micro levels could be another level of
study. The results shown in models depicts that asset management (efficiency) has a
positive rekation with ROA means if AM increases ROA also increases, or vice versa.
Similarly, AM also has a positive relation with ROE or vice versa. The study is
beneficial for overcoming the doubtfulness in banking sector. Ultimately, the findings
suggests that the need for targeted strategies that address both macro and micro levels
to build a more efficient and sufficient Islamic banking sector.
