MACRO AND MICRO LEVELS OF DETERMINANTS OF EFFICIENCY OF ISLAMIC BANKS

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.