Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi

Measurements of banking efficiency and productivity have received increasing efforts in applied economics in recent years due to the rapid acceleration of changing nature of financial industry. The financial sector, especially the banking system, plays a central role in the process of economic devel...

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Main Author:	M. S. Alrafadi, Khalad
Format:	Thesis
Language:	English
Published:	2016
Online Access:	https://ir.uitm.edu.my/id/eprint/17896/1/TP_KHALAD%20M%20S%20ALRAFADI%20BM%2016_5.pdf
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id	my-uitm-ir.17896
record_format	uketd_dc
spelling	my-uitm-ir.178962018-09-26T02:29:15Z Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi 2016 M. S. Alrafadi, Khalad Measurements of banking efficiency and productivity have received increasing efforts in applied economics in recent years due to the rapid acceleration of changing nature of financial industry. The financial sector, especially the banking system, plays a central role in the process of economic development and growth in a specific country. The efficiency of the banking system is one of the most important issues in the financial market because the efficiency of banks could affect the stability of the banking industry and thus the effectiveness of the whole monetary system in a country. Bank's efficiency is measured as the difference between the bank's position and its best production frontier. Generally, there are two main techniques that would be used to evaluate banking efficiency: parametric and non-parametric techniques. This study analyzed the technical efficiency and productivity of the banking sector inLibya during the period from 2004 until 2010. A nonparametric data envelopment analysis (DEA) method is employed to estimate the mutually exhaustive components namely pure technical efficiency (PTE) and scale efficiency (SE) of the 17 banks in Libya. Also, the Total Factor Productivity (TFP) of the Libyan banks is calculated using the Malmquist Productivity Index (MPI). The decomposition of the MPI such as technical change, efficiency change, pure technical efficiency change and scale efficiency change were included in the measurement. Finally, the second stage is used. The Ordinary Least Square (OLS) model to determine the factors that could influence the efficiency score. The findings of the first stage indicated an average efficiency scores in the banking sector in Libya during the periods of study. The results showed that the most efficient banks were the specialized banks, followed by commercial banks and lastly the private banks. In term of productivity, the results showed that Libyan banks productivity declined during the period of study. As for the determining factors that influencing the efficiency scores of the Libyan banks, the results showed that only profitability, size operation, government link, mergers and ownership structure that have significant relationship with the Libyan banks' efficiency scores. 2016 Thesis https://ir.uitm.edu.my/id/eprint/17896/ https://ir.uitm.edu.my/id/eprint/17896/1/TP_KHALAD%20M%20S%20ALRAFADI%20BM%2016_5.pdf text en public phd doctoral Universiti Teknologi MARA Faculty of Business and Management
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
description	Measurements of banking efficiency and productivity have received increasing efforts in applied economics in recent years due to the rapid acceleration of changing nature of financial industry. The financial sector, especially the banking system, plays a central role in the process of economic development and growth in a specific country. The efficiency of the banking system is one of the most important issues in the financial market because the efficiency of banks could affect the stability of the banking industry and thus the effectiveness of the whole monetary system in a country. Bank's efficiency is measured as the difference between the bank's position and its best production frontier. Generally, there are two main techniques that would be used to evaluate banking efficiency: parametric and non-parametric techniques. This study analyzed the technical efficiency and productivity of the banking sector inLibya during the period from 2004 until 2010. A nonparametric data envelopment analysis (DEA) method is employed to estimate the mutually exhaustive components namely pure technical efficiency (PTE) and scale efficiency (SE) of the 17 banks in Libya. Also, the Total Factor Productivity (TFP) of the Libyan banks is calculated using the Malmquist Productivity Index (MPI). The decomposition of the MPI such as technical change, efficiency change, pure technical efficiency change and scale efficiency change were included in the measurement. Finally, the second stage is used. The Ordinary Least Square (OLS) model to determine the factors that could influence the efficiency score. The findings of the first stage indicated an average efficiency scores in the banking sector in Libya during the periods of study. The results showed that the most efficient banks were the specialized banks, followed by commercial banks and lastly the private banks. In term of productivity, the results showed that Libyan banks productivity declined during the period of study. As for the determining factors that influencing the efficiency scores of the Libyan banks, the results showed that only profitability, size operation, government link, mergers and ownership structure that have significant relationship with the Libyan banks' efficiency scores.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	M. S. Alrafadi, Khalad
spellingShingle	M. S. Alrafadi, Khalad Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi
author_facet	M. S. Alrafadi, Khalad
author_sort	M. S. Alrafadi, Khalad
title	Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi
title_short	Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi
title_full	Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi
title_fullStr	Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi
title_full_unstemmed	Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi
title_sort	analyzing the production activity of banking institutions in libya: productivity and efficiency determinants / khalad m. s. alrafadi
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Business and Management
publishDate	2016
url	https://ir.uitm.edu.my/id/eprint/17896/1/TP_KHALAD%20M%20S%20ALRAFADI%20BM%2016_5.pdf
_version_	1783733619641024512

Analyzing the production activity of banking institutions in Libya: productivity and efficiency determinants / Khalad M. S. Alrafadi

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