Measuring the Efficiency of Sudanese Banks Using Data Envelopment Analysis Approach

Al Nema B.K. El Tom

Abstract


This paper examines the efficiency of commercial banks operating in Sudan using Data Envelopment Analysis (DEA). The purpose of the study is to measure the technical efficiency and scale efficiency in 2012 and 2013.These two years are particularly important as the economy witnessed some major changes after the secession of South Sudan and the loss of more than two thirds of export earnings in oil revenue. Inputs included expenses, deposits and the total assets while outputs included net profits, loans, and investments. Results suggest that there is significant relation between Efficiency and Return on Assets (ROA), Loan to total asset ratio (LOANTA), while bank size effect on efficiency fluctuates between these two years .

Keywords


Data Envelopment Analysis;Pure Technical Efficiency;Scale Efficiency;Sudanese Banks;Islamic Bank;input- out put

Full Text:

PDF Abstract

References


 Ahmad, N.H.bt., Noor, M.A.N.M., and Sufian, F. (2010). The efficiency of Islamic banks: empirical evidence from the Asian countries Islamic banking sectors. J. International  Business and Entrepreneurship Development, 5 (2), 154–166.  Berger, A.N., Kashyap, A.K. and Scalise, J.M. (1995), ‘The Transformation of the U.S.  Banking Industry: What a Long, Strange Trip It’s Been,’ Brookings Papers on Economic

Activity 2, 55-218.  Cooper, W.W., Seiford, L. M. and Tone, K. (2000) Data Envelopment Analysis. Boston: Kluwer Academic Publishers.  Eljelly Abuzar M. A. “ Internal and External Determinants Of Profitability Of Islamic Banks in Sudan: Evidence From Panel Data” Afro-Asian J. of Finance and Accounting, Vol. 3, No3, 222-240.

 Hassan, M.K and Hussein, K.A. (2003) Static and Dynamic Efficiency in the Sudanese Banking System, Review of Islamic Economics 14, 5-48.  Isik, I. and Hassan, M.K. (2002), Technical, Scale and Allocative Efficiencies of Turkish  Banking Industry, Journal of Banking and Finance 26 (4), 719-766.  Onour Ibrahim A, and Abdalla. Abdelgadir M.A “Efficiency of Islamic banks in sudan: A non- parametric Approach” journal of Islamic Economics, banking and finance lslamic bank Training and Research Academy. Vol 7. No 4.2011, ــ 93 .  Onour. Ibrahim A, and Aballa. Abdelgadir M.A “ Technical Efficiency Analysis of banks in Major Oil Exporting Middle East Countries’ Khartoum University Journal of Management Studies , 5,1,2011, 44 ـــ71 .  Hassan , T . Mohamed s. and Bader, M ,”Efficiency of Conventional versus Islamic Banks : evidence from the Middle East’’ ,International Journal of Islamic and Middle Eastern Finance and Management ,2, 2009 ,46 ــ 65 .  Seiford , L .and Zhu ,J. “Profitability and marketability of the Top 55 US Commercial Banks”, Management Science , 45 ,1999 ,1270 ـ88 .  Sufian , F . and Noor , M .”The Determinants of Islamic banks ” Efficiency Changes Empirical evidence from Mena and Asian banking sectors’’ International Journal of Islamic and Middle Eastern Finance and Management , 2, 2009 ,120 ــ 38 .


Refbacks

  • There are currently no refbacks.


KUJMS