Technical and Scale Efficiency of Commercial Banks in Nigeria

The IUP Journal of Applied Economics, Vol. IX, No. 4, pp. 59-68, October 2010

Posted: 4 Dec 2010

See all articles by Ajao Olajide Abraham

Ajao Olajide Abraham

affiliation not provided to SSRN

L.T. Ogunniyi

Ladoke Akintola University of Technology

Date Written: October 2010

Abstract

This study uses a multistage Data Envelopment Analysis (DEA) to estimate the productive efficiency of commercial banks in Nigeria. Thirteen banks with detailed information required were selected for the purpose. Three types of efficiencies were estimated and it was found that about 25% of the banks were inefficient due to excessive use of some of the inputs despite mergers and acquisitions. It was further discovered that environmental variables, like intermediation ratio and market power, positively affect the productive efficiency of the banks.

Suggested Citation

Abraham, Ajao Olajide and Ogunniyi, L.T., Technical and Scale Efficiency of Commercial Banks in Nigeria (October 2010). The IUP Journal of Applied Economics, Vol. IX, No. 4, pp. 59-68, October 2010, Available at SSRN: https://ssrn.com/abstract=1719003

Ajao Olajide Abraham (Contact Author)

affiliation not provided to SSRN ( email )

L.T. Ogunniyi

Ladoke Akintola University of Technology ( email )

PMB 4000
Ogbomoso, 210001
Nigeria

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