An Empirical Analysis of Allocative Efficiency of Nigerian Commercial Banks: A DEA Approach

This paper investigated an empirical analysis of allocative efficiency of Nigerian commercial Banks between the years 2002 to 2011. Ten Nigerian Banks were randomly selected out of 15 banks operating in Nigeria. For this intention, the Data Envelopment Analysis (DEA) model was used with three input...

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Main Authors: Usman Owolabi Akeem, Fadipe Moses
Format: Article
Language:English
Published: EconJournals 2014-09-01
Series:International Journal of Economics and Financial Issues
Subjects:
Online Access:https://dergipark.org.tr/tr/pub/ijefi/issue/31963/352016?publisher=http-www-cag-edu-tr-ilhan-ozturk
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author Usman Owolabi Akeem
Fadipe Moses
author_facet Usman Owolabi Akeem
Fadipe Moses
author_sort Usman Owolabi Akeem
collection DOAJ
description This paper investigated an empirical analysis of allocative efficiency of Nigerian commercial Banks between the years 2002 to 2011. Ten Nigerian Banks were randomly selected out of 15 banks operating in Nigeria. For this intention, the Data Envelopment Analysis (DEA) model was used with three input variables (deposits, operating expenses, and assets) and four output variables (loan and advances, investment, Interest income, and non-interest income). The mean allocative efficiency, for the period examined stood at 0.896 (89.6%). This mean result depicted the fact that Nigerian banking sector generally needs managerial attention beyond the emphasis on continual banking reforms of recapitalization, merger and acquisition and the likes so as to be ranked with the global perspective.
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spelling doaj.art-adda45c5927440f096f3d9f2007d0f6a2023-02-15T16:10:22ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382014-09-01434654751032An Empirical Analysis of Allocative Efficiency of Nigerian Commercial Banks: A DEA ApproachUsman Owolabi AkeemFadipe MosesThis paper investigated an empirical analysis of allocative efficiency of Nigerian commercial Banks between the years 2002 to 2011. Ten Nigerian Banks were randomly selected out of 15 banks operating in Nigeria. For this intention, the Data Envelopment Analysis (DEA) model was used with three input variables (deposits, operating expenses, and assets) and four output variables (loan and advances, investment, Interest income, and non-interest income). The mean allocative efficiency, for the period examined stood at 0.896 (89.6%). This mean result depicted the fact that Nigerian banking sector generally needs managerial attention beyond the emphasis on continual banking reforms of recapitalization, merger and acquisition and the likes so as to be ranked with the global perspective.https://dergipark.org.tr/tr/pub/ijefi/issue/31963/352016?publisher=http-www-cag-edu-tr-ilhan-ozturkdata envelopment analysis allocative efficiency decision-making units financial intermediation
spellingShingle Usman Owolabi Akeem
Fadipe Moses
An Empirical Analysis of Allocative Efficiency of Nigerian Commercial Banks: A DEA Approach
International Journal of Economics and Financial Issues
data envelopment analysis
allocative efficiency
decision-making units
financial intermediation
title An Empirical Analysis of Allocative Efficiency of Nigerian Commercial Banks: A DEA Approach
title_full An Empirical Analysis of Allocative Efficiency of Nigerian Commercial Banks: A DEA Approach
title_fullStr An Empirical Analysis of Allocative Efficiency of Nigerian Commercial Banks: A DEA Approach
title_full_unstemmed An Empirical Analysis of Allocative Efficiency of Nigerian Commercial Banks: A DEA Approach
title_short An Empirical Analysis of Allocative Efficiency of Nigerian Commercial Banks: A DEA Approach
title_sort empirical analysis of allocative efficiency of nigerian commercial banks a dea approach
topic data envelopment analysis
allocative efficiency
decision-making units
financial intermediation
url https://dergipark.org.tr/tr/pub/ijefi/issue/31963/352016?publisher=http-www-cag-edu-tr-ilhan-ozturk
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