EFFICIENCY AND PERFORMANCE OF ISLAMIC FINANCIAL PRODUCTS IN DUAL BANKING SYSTEMS: EVIDENCE FROM PRODUCT STRUCTURING IN UZBEKISTAN AND CENTRAL ASIA

Аннотация

This paper investigates the efficiency and performance of key Islamic financial products—Murabaha, Ijara, Musharaka, and Sukuk—within dual banking systems in Uzbekistan and Central Asia. Using a comparative approach, the study analyzes these products alongside conventional loans and leasing, focusing on profitability, risk, operational efficiency, product adoption challenges, and market demand behavior. Employing Data Envelopment Analysis (DEA), Stochastic Frontier Analysis (SFA), and financial ratio comparison, the article provides empirical insights into the unique position of Islamic finance in a region transitioning toward dual banking. However, quantitative analysis is constrained by data limitations, notably the scarcity and inconsistency of long-term, product-specific performance metrics for Islamic financial products in Central Asia. These constraints potentially weaken the empirical robustness and limit the generalizability of the research findings beyond the sampled institutions and time frame. Nevertheless, the analysis offers actionable recommendations for policymakers, industry practitioners, and researchers seeking to enhance the adoption and performance of Islamic finance in Central Asia.