Onour, Ibrahim and Abdalla, Abdelgadir (2011): Technical efficiency analysis of banks in major oil exporting Middle East countries.

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Abstract
This paper investigates efficiency performance of thirty six banks operating in Gulf Cooperation Council (GCC) countries during the period 20062008 . Our results indicate in general GCC banks showed considerable pure technical efficiency in the past three years with the year 2007 exhibit the most efficient year, as the number of pure technical efficient banks reached 33 percent of the total banks compared to 25 percent in 2008. The fall in technical efficiency in 2008 is due to simultaneous fall in pure technical efficiency and the scale efficiency. The output loss caused by scale inefficiency (fall of scale operations below optimum level) in 2008 is estimated 16 percent compared to 5 percent in 2007. Our results also indicate scale efficiency is inversely related to banks' size implying a major source of scale inefficiency in GCC banks is due to suboptimal size of operations. It is also indicated in the paper that scale efficiency is inversely related to risk, implying effective risk management policies may also enhance scale efficiency.
Item Type:  MPRA Paper 

Original Title:  Technical efficiency analysis of banks in major oil exporting Middle East countries 
English Title:  Technical efficiency analysis of banks in major oil exporting Middle East countries 
Language:  English 
Keywords:  technical efficiency;scale efficiency;DEA 
Subjects:  C  Mathematical and Quantitative Methods > C4  Econometric and Statistical Methods: Special Topics > C44  Operations Research; Statistical Decision Theory C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C63  Computational Techniques; Simulation Modeling C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61  Optimization Techniques; Programming Models; Dynamic Analysis 
Item ID:  29884 
Depositing User:  A Onour 
Date Deposited:  28. Mar 2011 09:02 
Last Modified:  13. Feb 2013 08:26 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/29884 