IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.48year2014issue2pp205-221.html
   My bibliography  Save this article

Bank efficiency in Africa

Author

Listed:
  • Roseline Oluitan

    (Lagos State University, Nigeria)

Abstract

This study examines the efficiency of the financial sector in African countries. It aims to investigate if ìThe financial institutions are capable of distributing the economic resources efficiently. Empirical evidence supports a sound intermediation process and efficiency in the banking system (Vittas, 1991; Howard & Haynes, 2001). In this paper, the cost function is estimated with the use of a single-output and multi-input approach for the analysis. The output consists of loans, other earning assets and non-interest revenue which are used individually for the estimation. The input is deemed to be made up of capital, deposits and labour (overhead). The analysis is further extended by calculating the x-inefficiency which is found to be within the range of 24 - 26%. The study made postulations in respect of the causes for the inefficiency and the possible remedies. The study comprises of Commercial banks from about forty seven African countries for a period of ten years.

Suggested Citation

  • Roseline Oluitan, 2014. "Bank efficiency in Africa," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(2), pages 205-221, April-Jun.
    • Handle: RePEc:jda:journl:vol.48:year:2014:issue2:pp205-221
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v048/48.2.oluitan.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kennedy Ochuka & Kennedy Okiro & Fredrick Ogilo, 2024. "Effect of Efficiency on the Relationship between Organization Characteristics and Financial Performance of Commercial Banks in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 2613-2623, July.
    2. Jonas Ladime & Rayenda Khresna Brahmana, 2021. "Role of controlling shareholders on the performance of efficient African banks," African Development Review, African Development Bank, vol. 33(2), pages 316-328, June.
    3. Bakam Fotso & E. I Edoun, 2017. "Critical Assessment of Banking Institutions in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 6-21.

    More about this item

    Keywords

    Bank; Efficiency; Profit; and Africa;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N27 - Economic History - - Financial Markets and Institutions - - - Africa; Oceania
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    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:jda:journl:vol.48:year:2014:issue2:pp205-221. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.