Author:
Abid Ihsen,Goaied Mohamed
Abstract
Purpose
The purpose of this paper is to evaluate and compare the efficiency ratios and the technological gaps of banking industries in seven countries of the Middle East and North Africa (MENA) region.
Design/methodology/approach
The meta-frontier model was used to evaluate efficiency across countries that may have different production technologies.
Findings
The results of the meta-frontier analysis of banking systems over the period from 1991 to 2011 showed that Tunisian banks were the most efficient in terms of cost and profit. For the cost (profit) model, the analysis of the technological gap showed that Egyptian (Tunisian) banks used the most advanced technology in offering financial services to clients. The comparison of efficiencies confirmed that most efficient banks in terms of cost are not necessarily the most efficient in terms of profit and vice versa. The authors also concluded that cost efficiency analysis provides a partial view of banking efficiency and hence, profit efficiency analysis is as important.
Originality/value
The study is relevant for policymakers, regulators and monetary authorities and for researchers to know more about the real differences of efficiency of banks across countries in MENA region and to clarify the sources of this inefficiency to better adapt to the new environment, to make strategic decisions and to reference the performance of banking institutions.
Subject
Strategy and Management,General Business, Management and Accounting
Reference68 articles.
1. Formulation and estimation of stochastic frontier production function models;Journal of Econometrics,1977
2. Environmental performance and technical efficiency, is there a link? The case of Greek listed firms;International Journal of Productivity and Performance Management,2012
3. Operational efficiency in banking: an international comparison;Journal of Banking and Finance,1996
4. Technical change in banking;Economics Letters,1999
5. Efficiency in European banking;European Economic Review,2001
Cited by
11 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献