Banking Efficiency: Concepts, Drivers, Measures, Literature and Conceptual Model

24 Pages Posted: 17 Jan 2019 Last revised: 18 Jan 2019

See all articles by Nader Alber

Nader Alber

Ain Shams University

Mayssa Elmofty

Ain Shams University, Students

Israa Walied

Ain Shams University, Faculty of Commerce, Students

Reda Sami

Ain Shams University, Students

Date Written: January 5, 2019

Abstract

This paper attempts to demonstrate the topic of banking efficiency. We try to shed lights on its concepts and types that include a) Pure technical efficiency, b) Scale efficiency, c) Allocative efficiency, d) Cost efficiency and e) Scope efficiency. Then, we move to the drivers of banking efficiency that includes three main groups; the first one is the strategy, the second one is the execution of strategy and finally the environment. Theses three groups are considered as the engine of banking success.

Regarding the measures of banking efficiency, they could be divided into structural and non-structural measures. Besides, they are classified into traditional, parametric, and non-parametric measures. Moreover, Data Envelopment Approach (DEA) is the most common measure of efficiency. After illustrating literature review, we elaborate and discuss the conceptual framework of banking efficiency developed by Mokhtar, AlHabashi & Abdullah (2006). This framework categorizes the analysis of banking efficiency into five steps or stages (F1- F5).

Keywords: Banking efficiency, Data Envelopment Analysis (DEA), determinants of banking efficiency, measure of banking efficiency

Suggested Citation

Alber, Nader and Elmofty, Mayssa and Walied, Israa and Sami, Reda, Banking Efficiency: Concepts, Drivers, Measures, Literature and Conceptual Model (January 5, 2019). Available at SSRN: https://ssrn.com/abstract=3310982 or http://dx.doi.org/10.2139/ssrn.3310982

Nader Alber (Contact Author)

Ain Shams University ( email )

Cairo
Egypt

Mayssa Elmofty

Ain Shams University, Students ( email )

Cairo
Egypt

Israa Walied

Ain Shams University, Faculty of Commerce, Students ( email )

Cairo
Egypt

Reda Sami

Ain Shams University, Students ( email )

Cairo
Egypt

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