IDEAS home Printed from
   My bibliography  Save this article

The productivity of Omani banks: a data envelopment analysis approach


  • Said Gattoufi
  • Said Al-Hatmi


The 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.

Suggested Citation

  • Said Gattoufi & Said Al-Hatmi, 2009. "The productivity of Omani banks: a data envelopment analysis approach," International Journal of Accounting and Finance, Inderscience Enterprises Ltd, vol. 1(4), pages 436-466.
  • Handle: RePEc:ids:intjaf:v:1:y:2009:i:4:p:436-466

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:intjaf:v:1:y:2009:i:4:p:436-466. 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: (Darren Simpson). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.