Inputs and Outputs in Islamic Banking System

Abstract

Evaluation of performance and productivity is among the fundamental concepts in<br />management. In order to achieve their goals, organizations must evaluate their<br />performance. One of the important stages of performance appraisal is evaluation of<br />organization's efficiency. Banks, financial and credit institutions are among the most<br />important organizations of every economic system, because every activity which<br />entails asset acquisition and financial resources undoubtedly requires mediation of<br />banks and financial organizations. One of the most vital issues in banks' efficiency<br />evaluation is identification of input and output variables. Identification of these<br />variables helps to create an appropriate model in order to evaluate the efficiency.<br />The purpose of this paper is clarifying of the importance of the input and output in<br />Islamic banking with the use of the content analysis method. In this paper various<br />approaches that were selected by researchers are reviewed and classified. Then the<br />input and output variables in the Islamic banking is analyzed. The result show that<br />the intermediation approach is the acceptable approach among scholars furthermore,<br />labors and deposits are best inputs while, loans and investment are best outputs.