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What Drives the Performance of Selected MENA Banks? A Meta-Frontier Analysis

Abstract
This study examines the effect of financial-sector reform on bank performance in selected Middle Eastern and North African (MENA) countries in the period 1994 -2008. We evaluate bank efficiency in Egypt, Jordan, Morocco, Lebanon and Tunisia by means of Data Envelopment Analysis (DEA) and we employ a meta-frontier approach to calculate efficiency scores in a cross-country setting. We then employ a second-stage regression to investigate the impact of institutional, financial, and bank specific variables on bank efficiency. Overall, the analysis shows that, despite similarities in the process of financial reforms undertaken in the five MENA countries, the observed efficiency levels of banks vary substantially across markets, with Morocco consistently outperforming the rest of the region.Differences in technology seem to be crucial in explaining efficiency differences. To foster banking sector performance, policies should be aimed at giving banks incentives to improve their risk management and portfolio management techniques. Improvements in the legal system and in the regulatory and supervisory bodies would also help to reduce inefficiency
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Banking sectors in the MENA region; 1. Financial development indicators (2008); 2. Banking Sector Indicators (2008); III. Methodology; IV. Data and Variables; A. Data; B. Input and Output Definition; 3. Summary Statistics of Input and Output Variables; C. Environmental Variables; V. Empirical Results; A. DEA Efficiency Results; 4. DEA Estimates MENA-5 Countries; 1. Meta-frontier DEA Efficiency Scores; 2. Meta-technology Ratios; B. Second Stage Results; 3. Meta-technology Ratios with Portugal; 5. Further DEA Estimates
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (53 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462307142

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