Financial Reforms and Banking Efficiency: Case of Pakistan

Usman Ahmad ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper attempts to analyze the performance of the banking sector of Pakistan in the light of second generation reforms on the domestic scheduled banks by using data from 1990 to 2008. For this purpose I used Non Parametric Data Envelopment Analysis (DEA). The analysis revealed an overall improvement in the efficiency of commercial banks. It implies that financial sector reforms, particularly the second phase of reforms, improved the efficiency of the commercial bank in Pakistan. After the reforms, pure technical efficiency increased as compared to scale efficiency and it was found that the overall efficiency of the industry has increased due to pure technical efficiency. The study concludes that the reforms were successful in improving the efficiency of the domestic commercial banks in Pakistan.

Keywords: Efficiency; Banks; DEA; Pakistan (search for similar items in EconPapers)
JEL-codes: E58 G21 (search for similar items in EconPapers)
Date: 2011-03-06
New Economics Papers: this item is included in nep-cwa, nep-eff and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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