مجلة الأصيل للبحوث الاقتصادية والإدارية
Volume 7, Numéro 1, Pages 153-168
2023-04-30

Analyzing Efficiency Of Banks In Algeria Using Stochastic Frontier Analysis

Authors : Achi Adel . Beroual Boumediene .

Abstract

The aim of this paper is to measure and analyze the efficiency of Algerian banks using a stochastic frontier analysis (SFA) approach and to test the potential effect of environmental variables on its efficiency over the period 2014–2017. The main results indicate that there exists room (12%) to improve efficiency since its mean value is 0,878. Algerian banks enjoyed a decreasing trend of efficiency mean levels. The efficiency is affected positively by age of bank and return on assets (ROA) and negatively by size of bank.

Keywords

bank efficiency ; determinants of efficiency ; stochastic frontier analysis ; Algerian banks ; economic crisis