بهره وری فنی در بانک های سعودی

This study analyses the technical efficiency of Saudi banks using a two-stage DEA-data envelopment analysis approach. In the first stage, we use a bootstrapped DEA–VRS model to identify the efficiency scores, and in the second stage, we use a bootstrapped truncated regression model to identify the covariates that explain technical efficiency. Policy implications are derived.

The Saudi banking sector has undergone substantial changes over the last decade. Banks have expanded their operations and have taken advantage of scale and scope economies as well as product diversification. The driving force behind these changes has been the recent gradual liberalization of financial sector, globalization of financial markets, changes in technology, product innovation and the growth of business activities by Islamic countries in the West (El-Gamal, 2006). The Saudi banking system is quite unique compared to the traditional banking system. It is under strict regulation imposed by SAMA (Saudi Monetary Agency) and has several distinguished characteristics. Saudi banks, for instance, provide a combination of conventional banking and Islamic banking. They are also funded by low cost demand deposits,1 and have difficulties to diversify credit risk due the overwhelming dependence on oil. Empirical research on bank efficiency in the Arabic peninsula is still limited as opposed to other regions such Europe and the USA. Some of the few studies include Avkiran (2009), Hisham et al. (2008), and Essayyad and Madani (2003). The aim of the present research is to analyse the technical efficiency of Saudi banks. The banks are the institutions that channel the oil funds to companies and families and therefore are strong determinants in the allocation of capital, financial stability and the competitiveness and development of manufacturing and services (Beck, Demirgüç-Kunt, & Levine, 2003). We analyse the technical efficiency of Saudi banks with the Simar and Wilson two-stage DEA bootstrap procedure (Simar & Wilson, 2007). In the first stage, we estimate the relative efficiency scores of Saudi banks. In the second stage, we analyse the relationship between the efficiency scores and some key environmental variables (e.g. foreign vs. domestic ownership) using a truncated regression model. The remainder of the paper is organised as follows: Section 2 describes the developments in the Saudi banking sector. Section 3 presents the literature survey. Section 4 presents the data. Section 5 discusses the methodology. Section 6 presents the empirical results, and finally, Section 7 concludes.

This study analysed the technical efficiency of Saudi banks with a two- stage DEA bootstrap model. We found that Saudi banks consistently improved their efficiency since 2004. We also found that Saudi banks with foreign capital have to improve their technical efficiency. This result is in contradiction with the general notion that foreign capital brings managerial skills. The present study should provide a starting point for further investigation and validation into the efficiency of the Saudi banking sector. This strand of research can provide important information for policy makers as for the openness of Saudi banking to new banks. Therefore, more investigation with alternative models can cross validate the present research.