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The Effect Of Banking Expansion On Profit Efficiency Of Saudi Arabia Commercial Banks

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  • Dr. Nader Alber

    (Associate Professor, Faculty of Commerce, Ain Shams University)

Abstract

This paper aims at analyzing the profit efficiency of the Saudi Arabia Commercial banks, and testing how it could be affected by banking expansion. This has been conducted using a sample of 6 commercial banks (out of 11), and covering the period from 1998 to 2007. Profit efficiency has been measured, using the ratio of actual profitability to the best one, which a similar bank (in size) can realize. Tests indicated that we could accept hypotheses regarding the effects of "availability of phone banking", "number of ATMs" and "number of branches" on profit efficiency of Saudi banks, also referred to the need to reject the hypotheses regarding the effects of "number of POSs", "availability of PC banking" and "availability of mobile banking"

Suggested Citation

  • Dr. Nader Alber, 2011. "The Effect Of Banking Expansion On Profit Efficiency Of Saudi Arabia Commercial Banks," Journal of Global Business and Economics, Global Research Agency, vol. 3(1), pages 11-23, July.
    • Handle: RePEc:grg:01biss:v:3:y:2011:i:1:p:11-23
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    1. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:435-458 is not listed on IDEAS
    2. Nicodemus Itivi Muthoka & Oluoch Oluoch & Paul Munene Muiruri, 2018. "The Influence of Branchless Financial Innovation on Market Capitalization of Commercial Banks Listed in NSE, Kenya," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(4), pages 120-130, October.
    3. R.M. Mahboub, 2018. "The Impact of Information and Communication Technology Investments on the Performance of Lebanese Banks," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 435-458.
    4. Ayth I. Almubarak & Abdullah A. Aljughaiman, 2024. "Corporate Governance and FinTech Innovation: Evidence from Saudi Banks," JRFM, MDPI, vol. 17(2), pages 1-12, January.

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    More about this item

    Keywords

    profit efficiency; banking expansion;

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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