Abstract:
Purpose- The study defines comparative analysis oftwo banking systems in Pakistan,
these two rivals are Conventional banking system and Islamic banking system. The main
objective is to compare the operational efficiency of both the banking systems and try to
analyze which one is better than other.
Research Methodology-Data envelopment analysis (DEA) is applied to interpret the
results with the help ofCRS and VRS models, the main tool to use these models is the
linear programming technique in which the selected inputs and outputs are the main
sources to identify the results.
Findings- The research concludes that Conventional banks are still better enough than
Islamic banks because oftheir huge size ofoperations with properly utilize the resources,
while Islamic banks highlights the oversize with limited resources or we can say that they
are not focusing on their resource utilization process.
Practical Implications- This research can be very useful to the management ofthe banks
because they will highlight the slacks that need improvements and will made the
decisions to achieve the optimal results
