 Efficiency of Botswana's financial institutions: a data envelopment analysisBoitumelo Dudu Moffat and Abbas Valadkhani Applied Economics Letters, 2011, vol. 18, issue 7, 697-702 Abstract: This article examines technical and pure technical efficiencies of 10 major financial institutions in Botswana during the period 2001 to 2006 using Data Envelopment Analysis (DEA). To obtain more robust and reliable results, the sensitivity of our efficiency indices were put to test by choosing three alternative approaches in specifying the mix of inputs and outputs. The empirical results indicate that (a) no matter which approach and year are taken into consideration, Bank of Baroda (BoB) and First National Bank (FNB) (which are both foreign banks) and Botswana Savings Bank (BSB) (which is a publicly owned institution) are consistently among the most efficient institutions and Botswana Development Corporation, African Bank Corporation and National Development Bank (NDB) are the least efficient ones; and (b) the most efficient banks are either small or large institutions in terms of their asset sizes. One can conclude that financial institutions can further enhance efficiency by adopting Self-Service Technologies (SSTs) such as telephone and Internet banking, which can substantially reduce their service delivery costs. Date: 2011 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:18:y:2011:i:7:p:697-702 Ordering information: This journal article can be ordered from DOI: 10.1080/13504851.2010.491456 Access Statistics for this article Applied Economics Letters is currently edited by Anita Phillips More articles in Applied Economics Letters from Taylor & Francis Journals |
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