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A performance assessment of Mozambique banks: a Bayesian stochastic frontier

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  • Luis Alberiko Gil-Alana
  • Carlos Barros
  • Dercio Mandlaze

Abstract

This article analyses the technical efficiency of Mozambican banks from 2005 to 2014 with a Bayesian stochastic frontier model. The intermediate approach is adopted and the results reveal that efficiency varies amongst the banks analysed. Foreign ownership of Mozambican banks is also analysed, as is public ownership, the role of mergers and acquisitions, big banks and active dividend policy within the context of bank costs. Policy implications are then derived.

Suggested Citation

  • Luis Alberiko Gil-Alana & Carlos Barros & Dercio Mandlaze, 2017. "A performance assessment of Mozambique banks: a Bayesian stochastic frontier," Applied Economics, Taylor & Francis Journals, vol. 49(45), pages 4579-4587, September.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:45:p:4579-4587
    DOI: 10.1080/00036846.2017.1287857
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