Determinants of Tunisian Bank Efficiency: A DEA Analysis

Ines Ayadi

Abstract


The objective of this research is to study the x-efficiency of Tunisian commercial banks for the period 1996-2010 using a DEA (Data Envelopment Analysis) method. Our results suggest that the cost efficiency of the sector is estimated at a score of 41.0%. Market share in terms of deposit banks and their engagement in risky activities especially in the field of credit negatively affecting their efficiency. A high bank capitalization positively influences the latter. In addition, state-owned banks are more efficient than their private counterparts.

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DOI: https://doi.org/10.5430/ijfr.v4n4p128



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International Journal of Financial Research
ISSN 1923-4023(Print)ISSN 1923-4031(Online)

 

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