Efficiency of the Tunisian trade banks: Study by the stochastic frontier approach

Abstract

In this paper, we propose to evaluate the scores of productive efficiency of 20 Tunisian commercial banks throughout the period 1990-2009. The local banking landscape was marked, during the studied period, by significant changes following the adoption, by the Tunisian government, of various measures of financial liberalization. In order to study the levels of efficiency cost realized by the Tunisian commercial banks, we propose a parametric method, named the Stochastic Frontier Approach “SFA”, on the one hand, and the determination of the variables explaining the level of inefficiency (of efficiency) on the other hand. Our results make it possible to conclude that the banks which obtained the best scores of efficiency are the BT (99,5%), the BH (98,5%) followed the (94,9%) and de ATB (94,5%)

What explains the technical efficiency of banks in Tunisia? Evidence from a two-stage data envelopment analysis

“…Hence, our results provide additional evidence of the positive relationship between ROA and technical efficiency that was found by most of the earlier studies (Saha et al 2015;Tadesse 2017;Banna et al 2019). It is, however, partially in line with the findings of Bannour and Labidi (2013). When bank managers can alter both inputs and outputs, ROA becomes insignificant in explaining technical efficiency.…”

“…LDR was found to be significant and positively related to technical efficiency with limited effect in a few bootstrap regressions. Hence, this result is weakly in line with Ben Naceur et al (2011) and contradicts the findings of Bannour and Labidi (2013) who found the LDR to be negatively related to technical efficiency. In particular, our results indicate that a higher liquidity risk may render some Tunisian banks more technically efficient by expanding output despite the risk of incurring higher banking operating costs.…”

“…However, this effect is very small in magnitude, attaining a maximum average of 0.2% loss in efficiency per additional bank branch. Unlike Repkova (2015) who found no significant effect for the number of branches, and contrary to Bannour and Labidi (2013), the technical efficiency of Tunisian banks may not increase with the broadening of their distribution networks. Hence, getting geographically closer to its clients does not enhance technical efficiency if the quantities of inputs needed are not accompanied by sufficient increases in outputs.…”

Bank Lending Efficiency in the Real Sector of the Economy of Ukraine within the Period of 2011 to 2014 Years

“…As the examples of using technical efficiency in the field of banking activity analysis we can mention the works of Ali Ataullah, Tony Cockerill and Hang Le [11], Iftekhar Hasan and Katherin Marton [12], Fotios Pasiouras [13], Bannour Boutheina and Labidi Moez [14] and many others. The expediency of using technical efficiency for the analysis of economic processes of banks functioning is based on the idea that in this case the comparative aspects of particular banks activity are taken into account, and also it's possible to obtain statistic ratings of significance and reliability of the results of the analysis made.…”

“…As the analysis literature sources shows [12]- [14], most studies of efficiency in the field of banking activity are based on usage of industrial approach, operational approach or an intermediary approach, which is based on the expenditure approach. Nevertheless, a bank is first of all a financial intermediary between the potential owners of spare money resources and different subjects of market relations who need such resources.…”