This study investigates the impact of bank regulation and supervision on the efficiency of banking sectors on 108 Islamic banks from 26 countries offering Islamic banking and finance products and services. The technical efficiencies of individual Islamic banks have been analyzed using the data envelopment analysis method (DEA). The ordinary least square estimation method is employed to examine the impact of country supervision and regulation on the technical efficiency of Islamic banks. The empirical findings suggest that supervisory power, activity restrictions and private monitoring positively influence the efficiency of Islamic banks. The study revealed that Islamic banks that are operating in Middle East and North Africa (MENA) and middle-income countries are more technically efficient given the less stringent rules on capital requirement and we found that there is statistically significant evidence that higher capital requirements are negatively associated with the efficiency of Islamic banks. The empirical findings of this study are expected to help policy-makers and government officials to better understand how their decisions affect the performance.

Abstract
1. Introduction
2. Literature Review
3. Data and Methodology
    3.1. Data Envelopment Analysis
    3.2. The Choice of Approach, Inputs, and OutputsVariables
    3.3. Multivariate Panel Regression Analysis
    3.4. Description of Variables Used in the PanelRegression Models
    3.5. Bank Specific Characteristic Variables
    3.6. Macroeconomic and Market ConditionVariables
    3.7. Regulation and Supervision Variables
4. Empirical Results
    4.1. Efficiency of Islamic Banks
    4.2. Determinants of the Efficiency of IslamicBanking
5. Conclusion and Policy Implication
References

• Nor Halida Haziaton MOHD NOOR(Faculty of Business and Management, UiTM Kelantan, Malaysia.) Corresponding Author
• Mohammed Hariri BAKRI(Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia, Melaka, Malaysia)
• Wan Yusrol Rizal WAN YUSOF(Faculty of Business and Management, UiTM Kelantan, Malaysia)
• Nor Raihana Asmar MOHD NOOR(Faculty of Business and Management, UiTM Kelantan, Malaysia.)
• Nurazilah ZAINAL(Faculty of Business Administration, UiTM Seremban, Malaysia)