Does Bank Efficiency Matter? A Case of Egypt

Hassan Hassan and Ammar Jreisat
Additional contact information
Hassan Hassan: Department of Banking and Finance, College of Business Administrative, Al Ain University of Science and Technology, UAE
Ammar Jreisat: Department of Banking and Finance, College of Business Administrative, Al Ain University of Science and Technology, UAE

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 2, 473-478

Abstract: This paper offers to measure the efficiency of the Egyptian banks and its determining factors. Using data envelopment analysis in the first stage to find the efficiency level for banks, by comparing the efficiency of large, medium and small banks and the efficiency of foreign and domestic banks through a balanced panel which cover 14 banks operating in Egypt from 1997 to 2013. A detailed analysis per banking group reveals that medium banks are the most efficient ones, followed by foreign banks. In the second stage, potential determinants of technical efficiency are studied using a regression model using method developed by Papke and Wooldridge (1996). The variables logarithm of total assets, loans to deposits, and Net interest margin are all statistically significant with positive affected on the efficiency level for the Egyptian banks, however, number of branches and non-interest expense over total assets all statistically significant with negatively affected on the efficiency level for the Egyptian banks

Keywords: Egyptian Banks; Technical Efficiency; Pure Technical Efficiency; Scale Efficiency; Data Envelopment Analysis (search for similar items in EconPapers)
JEL-codes: D22 D24 D61 G21 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/1876/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/1876/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2016-02-15

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().