Determinants of Banking Efficiency: Evidence from Egypt

Abstract

This paper aims at analyzing the effects of bank size, age and ownership on efficiency of Egyptian banks, as measured by Data Envelopment Analysis (DEA) according to CCR method. This has been conducted using Wilcoxon signed rank test, as applied on a sample of 10 banks during the period from 1984 to 2013.

Results indicate that, efficiency scores differ significantly, according to “size”, “age” and “ownership” of the Egyptian banks, where small, old and private banks seem to be more efficient than big, young and public ones. Also, robustness check assures the “age” and “ownership” effects, using panel data analysis.

Keywords: bank age, bank efficiency, bank ownership, Data Envelopment Analysis (DEA), Egyptian banks, size effect