The private sector, in order to function properly, needs financing from the national financial sector, and so the efficiency and competitiveness of said financial sector arouse the interest of many researchers, who perform analyses in order to provide authorities and decision makers with relevant information for the decision-making process and the design of their financial policies. This study contributes to this line of research, analyzing both technical and economic efficiency (allocative and cost efficiency) in the financial sector, focusing on banks, using a sample of Equatorial Guinean firms during the period of 2013–2019. Furthermore, the competitiveness of the financial sector is also analyzed. Knowing how efficient and competitive the financial sector is could answer many of the questions that arise when regulating the national business sector. To carry out this analysis, parametric approaches such as stochastic frontiers and non-parametric techniques such as data envelopment analysis are used, as well as different competitiveness indicators (Boone, Panzar–Rosse). During the research, it is found that the banking sector, which represents the financial sector of the country, operates with low levels of technical efficiency: the Cobb–Douglas production function and the trans-logarithmic production function showed similar average efficiency results. Regarding competitiveness, the financial sector operates under monopolistic competition. Therefore, much remains to be achieved to improve the efficiency and competitiveness of the financial sector for the development of Equatorial Guinea. It is the responsibility of economic agents to provide a good business climate in the country and guarantee perfect competition in the financial market to promote national development.
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