The Technical Efficiency of Nigerian Banks
This study provides an insight into the technical efficiency of Nigerian banks. The Data Envelopment Analysis (DEA) approach was employed to derive the efficiency scores of the various banks. A total of 67 banks, made up of commercial and merchant banks were used for the periods 1984/1985, 1994/1995, 1999/2000, and 2003/2004. This enabled us to investigate the efficiency of these banks pre- and- post liberalization. However, the periods were before the consolidation exercise of the Central Bank of Nigeria (CBN) headed by both Soludo and Sanusi. This enabled us compare the results with the outcome of those consolidation exercises. The result shows that on the average Nigerian banks were not efficient within the periods of study. However, it showed that liberalization improved the efficiency of banks in Nigeria, though the improvement did not last as some of the banks started sliding in efficiency with continued liberalization. This tends to support the consolidation exercises which were actions taken along with the liberalization exercise to save the banks. Furthermore, the study shows that some of the banks that collapsed during the 2006 consolidation exercise had their efficiencies continuously on the decline. Same with some of the banks that were declared problematic by Sanusi. It also showed that privately owned banks were found to be more efficient than publicly owned banks within the period of study. This suggests that continued privatization should be pursued in the banking industry.
Volume (Year): 2 (2012)
Issue (Month): 2 (June)
|Contact details of provider:|| Postal: Sadeeq Block, Near Fawara Chowk, Abbasia Town, Rahim Yar Khan - 64200, Punjab, Pakistan|
Web page: http://www.aessweb.com/
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David A Grigorian & Vlad Manole, 2006.
"Determinants of Commercial Bank Performance in Transition: An Application of Data Envelopment Analysis,"
Comparative Economic Studies,
Palgrave Macmillan, vol. 48(3), pages 497-522, September.
- Grigorian, David A. & Manole, Vlad, 2002. "Determinants of commercial bank performance in transition - an application of data envelopment analysis," Policy Research Working Paper Series 2850, The World Bank.
- David A. Grigorian & Vlad Manole, 2002. "Determinants of Commercial Bank Performance in Transition; An Application of Data Envelopment Analysis," IMF Working Papers 02/146, International Monetary Fund.
- Adolfo Barajas & Natalia Salazar & Roberto Steiner, 1999. "Foreign Investment in Colombiaâ€™s Financial Sector," IMF Working Papers 99/150, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:2012:p:407-420. See general 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: (Qazi Muhammad Imran)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.