Technical Efficiency and Productivity Growth of Saudi Banks

Akhtar, Mohammad Hanif

doi:10.1177/097215091001100201

Cited by 9 publications

(10 citation statements)

References 29 publications

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“…DEA decomposes the efficiency into technical and allocative efficiency; technical efficiency is eithermaximizing output for a given level of inputs or minimizing inputs for a given level of output. Kao and Hwang (2008), Greene and Segal (2004), Debasish (2006), Akhtar (2010), Chang et al (2011) and Bhatia and Mahendru (2016) have applied DEA for its capability in capturing the relationship between multiple inputs and outputs.…”

Section: Methodsmentioning

confidence: 99%

Assessing the Technical Efficiency of Traditional and Corporate Agents in Indian Life Insurance Industry: Slack-based Data Envelopment Analysis Approach

Shetty

Basri

2018

Global Business Review

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The distribution channels play an imperative role in the life insurance industry. In India, traditional and corporate agency are contributing immensely to the profitability of the insurance companies. The challenges faced by the distributional channels such as high attrition, soaring expense ratio and sales inefficiency have created the need to probe into the efficiency aspects of the channel players. In the absence of such studies in India, this article evaluates the technical efficiency of distribution channels in life insurance industry by analysing the data collected from 12 insurance companies for the period 2012 to 2016. The efficiency scores were obtained by applying data envelopment analysis that considered two inputs (number of agents and commission expenses) and two outputs (average business premium and total policies sold). The findings reveal no significant difference in the efficiency scores of bancassurance and traditional agents. Quiet life hypothesis that market share (ratio of premium contribution to total premium) of distributional channels and their efficiency scores are negatively correlated is not supported. Moreover, the slack analysis shows excess inputs per output generated for both the channels. If the companies that scored low in efficiency do not plug the leakages regarding commission as well a number of agents, adverse performance in the long-term and consequent financial crisis are inevitable.

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Section: Methodsmentioning

confidence: 99%

Assessing the Technical Efficiency of Traditional and Corporate Agents in Indian Life Insurance Industry: Slack-based Data Envelopment Analysis Approach

Shetty

Basri

2018

Global Business Review

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“…Based on DEA efficiency scores and productivity indices of banks in Saudi Arabia, Akhtar (2010), finds that technical inefficiency emerges from both scale and pure technical inefficiencies. However, he argues that the major source of productivity gain was the efficiency change relative to technological change.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, he argues that the major source of productivity gain was the efficiency change relative to technological change. Akhtar (2010, p. 119) also suggests that ‘the existing monopolistic type of banking sector needs to be transformed into a competitive one, enabling banks to look for optimality and competitiveness simultaneously’.…”

Section: Literature Reviewmentioning

confidence: 99%

How to Choose a Nonparametric Frontier Model? Technical Efficiency of Turkish Banks Assessing Global

Bannour

Sghaier

Nurunnabi

2018

Global Business Review

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This article aims to address current gaps in the literature on banking efficiency using the data envelopment analysis (DEA) model. The study assesses the technical efficiency of the Turkish banking sector in the period spanning from 1990 to 2010 in-line with DEA model. In comparison with the DEA model, the CCR model (developed by Charnes, Cooper & Rhodes, European Journal of Operational Research, 1978, 2(6): 429–444) does not need model assumptions on input/output orientation. It also avoids the dilemma about the choice of input/output indicators. The comparison analysis of this study reveals that the CCR model yields more significant efficiency results than the BCC model (developed by Banker, Charnes & Cooper, Management Science, 1984, 30(9): 1078–1092). This study provides important contribution to the current empirical research on banking efficiency. The empirical results of the study reveal a steady increase in global efficiency of the Turkish banking sector over the past two decades. The future research could focus on the behavioural aspects of bank efficiency (e.g., managerial practices). The study also offers managerial implications.

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“…Generally, to establish the approach to assess the efficiency of banks, previous studies viewed banks from two main perspectives. The approaches are the intermediation and the production approach (Akhtar, 2010;Sufian, 2007b;Sufian & Haron, 2009).…”

Section: Approaches To Measure Bank Efficiencymentioning

confidence: 99%

Malaysian Islamic Banks’ Efficiency: An Intra-Bank Comparative Analysis of Islamic Windows and Full-Fledged Subsidiaries

Salami¹,

Adeyemi²

2017

IJBS

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This paper aims to fill an apparent dearth of empirical studies that compare the efficiency of Islamic banks in Malaysia during their operation as Islamic windows and later transformation to full-fledged Islamic banks. Data obtained from the annual financial reports of the sampled banks is analyzed using the Data Envelopment Analysis (DEA) via DEAP 2.1 software to assess both the technical and scale efficiency of the banks under sample. Results obtained indicate that the banks have improved over the years in terms of both scale and technical efficiency although the former takes prominence. In general, the banks were found to be more efficient as Islamic windows compared to being full-fledged subsidiaries. This augurs well for the current disposition where, as per the Islamic Financial Service Act 2013, Islamic banks in Malaysia may now operate as full-fledged banks from their hitherto Islamic banking window status.Keywords: Scale Efficiency; Technical Efficiency; Islamic Window; Full-Fledged Banks.

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Technical Efficiency and Productivity Growth of Saudi Banks

Cited by 9 publications

References 29 publications

Assessing the Technical Efficiency of Traditional and Corporate Agents in Indian Life Insurance Industry: Slack-based Data Envelopment Analysis Approach

Assessing the Technical Efficiency of Traditional and Corporate Agents in Indian Life Insurance Industry: Slack-based Data Envelopment Analysis Approach

How to Choose a Nonparametric Frontier Model? Technical Efficiency of Turkish Banks Assessing Global

Malaysian Islamic Banks’ Efficiency: An Intra-Bank Comparative Analysis of Islamic Windows and Full-Fledged Subsidiaries

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