The productivity of Omani banks: a data envelopment analysis approach
AbstractThe aims of this research are to analyse the performances of Oman's banking sector and do a comparative analysis for its different units. The analysis is based on the assessment of the relative efficiency of the commercial banks operating in Oman. Data Envelopment Analysis (DEA) was used to evaluate the relative efficiency of the commercial banks in Oman. Panel data for the period of 2000-2005 were used to conduct the analysis. The intermediation theory serves as the theoretical background. The DEA provides the Technical Efficiency (TE) score for each bank per year. The TE scores are then decomposed into Pure Technical Efficiency (PTE) and Scale Efficiency (SE). In line with previous similar studies, the results suggest that the banking system in Oman, though performing proportionally to the size of its units, shows signs of pure technical inefficiency. Furthermore, the relatively high average TE score (90.4%) indicates the oligopolistic nature of Oman's banking sector. The findings also indicate that the local commercial banks outperform their foreign counterparts, confirming the home-country advantage suggested in the corporate cross-border activity literature. Finally, large banks are found to out perform their medium and small counterparts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Accounting and Finance.
Volume (Year): 1 (2009)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=231
Gulf Cooperation Council; GCC; Oman; banking performance; bank efficiency; data envelopment analysis; DEA; performance evaluation; commercial banks; technical efficiency.;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If references are entirely missing, you can add them using this form.