The Determinants of the Efficiency of Ivorian Commercial Banks: A Study Using the Non-Parametric Approach

Yao Séraphin Prao and Salimata Diabate

International Business Research, 2022, vol. 15, issue 11, 30

Abstract: The objective of this study is to analyze the determinants of banking efficiency in Côte d'Ivoire. To achieve this objective, we used annual data covering the period from 2004 to 2017, for fifteen Ivorian banks. Methodologically, we first used the non-parametric data envelopment analysis (DEA) method to determine the efficiency scores. The results show that Ivorian banks are technically inefficient. Second, we used a Tobit model to identify the determinants of bank efficiency. The Tobit regression identifies return on equity, regulatory capital, size, and credit as the main determinants of the technical efficiency of Ivorian banks. In addition, bank liquidity and ownership, GDP growth rate, and inflation are sources of inefficiency in Ivorian banks. The study recommends that banks manage their resources rationally to finance the economy efficiently. At the level of the monetary authorities, they should ensure that banks apply regulatory standards.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ccsenet.org/journal/index.php/ibr/article/download/0/0/47934/51486 (application/pdf)
https://ccsenet.org/journal/index.php/ibr/article/view/0/47934 (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:ibn:ibrjnl:v:15:y:2022:i:11:p:30

Access Statistics for this article

More articles in International Business Research from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().