This paper studies the technical efficiency of Saudi banking sector using stochastic frontier model. A sample of 12 banks over the period 2000 -2011 is selected to investigate their technical efficiencies in mobilizing deposits, allocating investments and generating income. The banks are categorized as Saudi-owned banks, Saudi -foreign owned banks and Islamic banks. The findings show some consistent pattern of these bank types; and there exist significant disparities among the banks in terms of technical efficiency. The banque Saudi Fransi stands out as a benchmark for the industry, and it is a Saudi -foreign owned bank type. The Saudi owned bank type has shown fluctuating performance during the period; and the Islamic bank type is not significantly different from Saudi-owned bank type.
Keywords: technical efficiency, stochastic frontier analysis, bank type
Contributions and implications of the paper: The paper appears to be the second of its kind, after Alkhathlan et al (2010) to study the technical efficiency of Saudi banks. The paper distinguishes itself from the previous work of Alkhathlan et al (2010) by adding the dimensions of philosophical foundations and ownership structures of the banks in the analysis. It also expands the analysis by looking at three output variables instead of one output variable. The paper tends to raises a further research question concerning the relationship between the bank performance and its ownership structure and philosophical foundation. Though, the current paper tends to suggest that there exists a relationship between the two; further researches with different samples from Saudi market and around the world are suggested to test this relationship.
We examine and compare the performance of 63 (21 Islamic and 42 conventional) GCC banks at two tiers, covering the period of 2010–2016. In the first tier, an industry-level analysis is conducted of each country, followed by an individual bank-level analysis in the second tier. Deposits, assets, and capital are taken as inputs to measure the outputs using data envelopment analysis techniques. At the industry level, we find that Islamic banking is at par with-if not better than-conventional banking in all terms of efficiency. Particularly, banking in Bahrain and KSA is among the best, whereas there is no scope for improvement in the UAE’s banking industry. This low performance could be attributed to a lack of standardization in products and schemes as well as the level of prudence in decision-making, governance, and operations. At the bank level, many Islamic banks perform even better than conventional banks. Most studies on GCC and MENA focus on the determinants and indicators of development and the banking industry growth in general. Uniquely, we further examine GCC banking performance at the individual bank level by incorporating the latest available data.
Building on IS research, this study investigates m-banking continuance from an emerging market perspective. Using a mixed-methods approach, the study presents m-banking continuance phenomenon through an integrated model. Study 1 focuses on qualitative interviews of mobile banking users, whereas study 2 empirically tests the conceptual model derived from literature and the results of study 1. Study 1 reveals three additional constructs, perceived ubiquity, perceived autonomy, and perceived security concerns to the existing literature-based constructs. However, the results of study 2—a survey of 390 m-banking users—provide empirical evidence to support the hypotheses drawn in the proposed conceptual model. The results reveal that perceived ubiquity, perceived usefulness, satisfaction, facilitating conditions, perceived security concerns, and trust have emerged as significant direct influencers on m-banking continuance. Moreover, the study offers practical academic and managerial implications regarding m-banking.
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