Performance of banks in countries of the Gulf Cooperation Council

Ramakrishnan Ramanathan

International Journal of Productivity and Performance Management, 2007, vol. 56, issue 2, 137-154

Abstract: Purpose - The purpose of this paper is to assess the performance of banks in countries of the Gulf Cooperation Council (GCC). Design/methodology/approach - Performances of 55 banks operating in countries of the GCC are examined in this study using data envelopment analysis (DEA) and Malmquist productivity index (MPI). When DEA is used, the bank(s) that registered the highest efficiency is used as benchmark and the performance of other banks are evaluated relative to this benchmark. Two outputs and four inputs are employed for the performance measurement. MPI is used to analyze the patterns of efficiency change over the period 2000‐2004. Findings - DEA efficiencies are calculated for the year 2004. Results show that only 15 of the 55 banks are rated as efficient under constant returns to scale (CRS) assumption, and all the GCC countries have at least one efficient bank. The analysis using MPI has shown that banks in four of the six GCC countries (Bahrain, Kuwait, Saudi Arabia and the UAE) registered productivity improvements during 2000‐2004. The selected banks in Bahrain have shown the highest productivity improvements during this period, while the selected banks in Qatar have registered the highest reductions in productivity during this period. Interestingly, all the countries seem to have registered reductions in productivity in terms of technology change. Research limitations/implications - More banks could not be considered in this study due to non‐availability of consistent data. Since performance of banks in more than one country have been compared, we have used a common unit of monetary measurement. Originality/value - This study is first to study the performance of banks in the Middle East, with the exception of a study of selected banks in Kuwait.

Keywords: Data analysis; Production management; Banks; Performance levels; Persian Gulf States (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:ijppmp:v:56:y:2007:i:2:p:137-154

DOI: 10.1108/17410400710722635

Access Statistics for this article

International Journal of Productivity and Performance Management is currently edited by Dr Luisa Huatuco and Dr Nicky Shaw

More articles in International Journal of Productivity and Performance Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().