Cost Efficiency of the Egyptian Banking Sector: A Panel Data Analysis
Based on a two stage method this paper investigates the determinants of the cost efficiency (CE) of Egyptian banking sector. Employing data envelopment analysis (DEA). We compare the CE of large, medium and small banks and the CE of foreign and domestic banks using a balanced panel which cover 14...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2016-05-01
|
| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/32012/353750?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1828028755124158464 |
|---|---|
| author | Ismail Hassan Ammar Jreisat |
| author_facet | Ismail Hassan Ammar Jreisat |
| author_sort | Ismail Hassan |
| collection | DOAJ |
| description | Based on a two stage method this paper investigates the determinants of the cost efficiency (CE) of Egyptian banking sector. Employing data envelopment
analysis (DEA). We compare the CE of large, medium and small banks and the CE of foreign and domestic banks using a balanced panel which cover
14 banks operating in Egypt from 1997 to 2013. In the first stage, CE scores are computed using an input-oriented DEA. At the second stage, CE scores
are regressed on a set of potential explanatory variables in a logit model. While the CE scores show large improvements in the early and third phases
of financial deregulation. Over the entire sample period, CE has declined at the rate of 0.963% per annum. Our finding indicates that age, loan to net
interest margin, return on equity and good management practices positively affects banks CE and number of bank branches negatively affects bank CE. |
| first_indexed | 2024-04-10T13:58:57Z |
| format | Article |
| id | doaj.art-9962945af40a4fdea0bc1282f7236d20 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:58:57Z |
| publishDate | 2016-05-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-9962945af40a4fdea0bc1282f7236d202023-02-15T16:10:22ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-05-01638618711032Cost Efficiency of the Egyptian Banking Sector: A Panel Data AnalysisIsmail HassanAmmar JreisatBased on a two stage method this paper investigates the determinants of the cost efficiency (CE) of Egyptian banking sector. Employing data envelopment analysis (DEA). We compare the CE of large, medium and small banks and the CE of foreign and domestic banks using a balanced panel which cover 14 banks operating in Egypt from 1997 to 2013. In the first stage, CE scores are computed using an input-oriented DEA. At the second stage, CE scores are regressed on a set of potential explanatory variables in a logit model. While the CE scores show large improvements in the early and third phases of financial deregulation. Over the entire sample period, CE has declined at the rate of 0.963% per annum. Our finding indicates that age, loan to net interest margin, return on equity and good management practices positively affects banks CE and number of bank branches negatively affects bank CE.https://dergipark.org.tr/tr/pub/ijefi/issue/32012/353750?publisher=http-www-cag-edu-tr-ilhan-ozturkcost efficiency two-stage data envelopment analysis egyptian banks |
| spellingShingle | Ismail Hassan Ammar Jreisat Cost Efficiency of the Egyptian Banking Sector: A Panel Data Analysis International Journal of Economics and Financial Issues cost efficiency two-stage data envelopment analysis egyptian banks |
| title | Cost Efficiency of the Egyptian Banking Sector: A Panel Data Analysis |
| title_full | Cost Efficiency of the Egyptian Banking Sector: A Panel Data Analysis |
| title_fullStr | Cost Efficiency of the Egyptian Banking Sector: A Panel Data Analysis |
| title_full_unstemmed | Cost Efficiency of the Egyptian Banking Sector: A Panel Data Analysis |
| title_short | Cost Efficiency of the Egyptian Banking Sector: A Panel Data Analysis |
| title_sort | cost efficiency of the egyptian banking sector a panel data analysis |
| topic | cost efficiency two-stage data envelopment analysis egyptian banks |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/32012/353750?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| work_keys_str_mv | AT ismailhassan costefficiencyoftheegyptianbankingsectorapaneldataanalysis AT ammarjreisat costefficiencyoftheegyptianbankingsectorapaneldataanalysis |