Are Saudi Banks Efficient? Evidence using Data Envelopment Analysis (DEA

Alkhathlan, Khalid; Malik, Syed Abdul

doi:10.5539/ijef.v2n2p53

Cited by 26 publications

(12 citation statements)

References 16 publications

(12 reference statements)

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“…In addition, the Saudi banks with foreign capital need to improve the technical efficiency. The finding is consistent with Alkhathlan and Malik [10] in which the Saudi banks were efficient in the management of financial resources.…”

Section: Literature Reviewsupporting

confidence: 80%

Efficiency measurement of the banking sector in the presence of non-performing loan

Hamid

Ramli

Hussin

2017

AIP Conference Proceedings

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A total norm of τ-adic non-adjacent form occurring among all element of ℤ(τ): An alternative formula AIP Conference Proceedings 1795, 020002 (2017) Abstract. Bank industry plays a vital role in a country's economic development. In the banking industry, the nonperforming loans which are acknowledged as being undesirable outputs and usually ignored in most of the analysis should be taken into account since they are undesirable by-products of producing loans and may lead to the bank inefficiency. Modelling the efficiency measurement without undesirable outputs can provide misleading results and unfair assessment. The Directional Distance Function (DDF) approach which extended from the Data Envelopment Analysis (DEA) framework is one of the enhancement efficiency approaches to handle a situation when there is a joint production of the desirable and undesirable outputs. The comparison of both results between the domestic and foreign banks shows that the DEA technical efficiency score for domestic banks is marginally higher than the Malaysian foreign banks. However, when incorporating the undesirable output, the DDF technical efficiency for foreign banks is slightly higher than domestic banks.

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Section: Literature Reviewsupporting

confidence: 80%

Efficiency measurement of the banking sector in the presence of non-performing loan

Hamid

Ramli

Hussin

2017

AIP Conference Proceedings

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“…The Banque Saudi Franci is a benchmark for the other banks to emulate its best practices, while bank Aljazeera, Riyad Bank and Arab national bank need to increase their efforts to catch up with the rest. These findings conforms the conclusion rich at by Alkhathlan et al (2010). Alrajhi bank and SAMBA can do better than their current performance to improve their deposit mobilization and investment efficiency.…”

Section: Income Efficiencysupporting

confidence: 88%

“… 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.…”

Section: Contributions and Implications Of The Papermentioning

confidence: 99%

The Performance of Saudi Banking Industry 2000 -2011: Have the Banks Distinguished Themselves from One Another?

Sillah¹,

Khokhar²,

Khan³

2014

International Journal of Financial Research

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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.

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“…Of course, in reality input and output may have intuition nature. AlKhathlan and Malik (2010) in are arabian banks effective? says that Saudi Arabia has a bank-base financial system compared with other countries of the region.…”

Section: Introductionmentioning

confidence: 99%

Fuzzy failure modes and effects analysis by using fuzzy Vikor and Data Envelopment Analysis‐based fuzzy AHP

Baloch

Mohammadian

2016

Int. j. adv. appl. sci

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In the Failure mode and effects analysis and its classical effects, the classical priorities are determined by means of risk priority number and risk factors multiplication. However, exact risk priorities are criticized by many researchers for its imperfections and disadvantages so that many studies done on Failure mode and effects analysis and its effects to dominate the issues. In this paper, linguistic variables are used that later on by trilingual fuzzy numbers are used to assess the weighs and ranks of risk factors. To determine the weighs of each risk factors, the fuzzy hierarchical analysis method and ranking with selection of the most important impairment manner and fuzzy Vikor method, Data Envelopment Analysis are used. The suggested model applies the assessment and potential manners of ranking in the production of width strength set of the radiator of Samand car in the car company of Iran.

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Are Saudi Banks Efficient? Evidence using Data Envelopment Analysis (DEA

Cited by 26 publications

References 16 publications

Efficiency measurement of the banking sector in the presence of non-performing loan

Efficiency measurement of the banking sector in the presence of non-performing loan

The Performance of Saudi Banking Industry 2000 -2011: Have the Banks Distinguished Themselves from One Another?

Fuzzy failure modes and effects analysis by using fuzzy Vikor and Data Envelopment Analysis‐based fuzzy AHP

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