This paper provides a comparative analysis regarding the performance of 17 Libyan banks over the period 2004 up to 2010. According to the relevant literature, there are few studies that combine both the Data Envelopment Analysis (DEA) technique and Tobit model for assessing the efficiency levels and subsequently examining the determinants of efficiency for the banking sector in Libya. For this study, the DEA technique was used to estimate cost, allocative, and technical efficiency of sampled banks by using DEAP software. In the second stage, Tobit regression model was used to identify potential determinants of efficiency by using Stata10 software. The results showed that the specialized banks have exhibited higher mean cost efficiency relative to commercial and private banks. The results of efficiency determinants showed positive relationship between bank efficiency, and return on investment (ROA); risk; and size of operation (SO). This paper concludes with some policy implications of the results.

No abstract

This paper provides a comparative analysis regarding the performance of 17 Libyan banks over the period 2004 up to 2010. According to the relevant literature, there are few studies that measure both technical efficiency and Malmquist productivity index approach using non -parametric approach (DEA) for the banking sector in Libya. For this study, the DEA technique was used to estimate technical, pure technical, and scale efficiency of sampled banks by using DEAP software. . The results showed that the specialized banks have exhibited higher mean technical efficiency relative to commercial and private banks. This paper concludes with some policy implications of the results. The results for total factor productivity (TFP) showed 11 of 17 Libyan banks decline because TFP levels of banks drawn by negative technical efficiency change (less than 1) or by negative technological change, or both of them are negative.

Objective: This paper provides a survey of efficiency in banks using Data Envelopment Analysis (DEA) in developed and developing countries. Methods: There are two ways were used; the first one is analyse previous reviews, and the other one is systemic search from ProQuest, Emerald, Scopus and Science Direct. The search conducted to identify efficiency in banks in developed and developing countries. Originality: This study contributes in the existing literature in measuring efficiency in banks using DEA as a non -parametric technique. Results: Studies that was survey showed that the score of allocative efficiency was more than technical and cost efficiencies. Also, Studies showed that the scores of cost efficiency were more than the scores of profit efficiency. Conclusion: This paper shows that most of these studies were conducted in developed countries context, Also many studies were in developing countries. But, very few studies were conducted in the context of banking industry in Arab countries.This study contributes to fill the gap in literature for studies were conducted to measure the efficiency of banking industry. Also it contributes in the body of knowledge by understanding the status of efficiency in the banking industry using non -parametric approach.

This paper offers to measure the technical efficiency and its determinants factors of Libyan Banks from 2004 to 2010. For this objective we use Data Envelopment Analysis for assessing technical efficiency in the first stage, and in the second stage we use the Tobit regression model to identify potential determinants of efficiency by using E-Views 7 software. The results showed that the specialized banks have exhibited higher mean technical efficiency relative to commercial and private banks. The results of efficiency determinants showed positive relationship between bank efficiency, and ROA; size of operation; capital adequacy; and government linked banks (government ownership). This paper concludes with some policy implications of the results.