Competition and Banking Efficiency : Evidence from Tunisian Banking Industry

Ali , Mohamed Sami; Sghaier , Asma

Article Details

Competition and Banking Efficiency : Evidence from Tunisian Banking Industry

Authors:

Ali , Mohamed Sami | Sghaier , Asma

Publisher:

Islami Bank Training and Research Academy

Main Topics:

Economics and Finance

Journal:

Journal of Islamic Economics, Banking and Finance 2012 Vol.8 Issue 1, pp.53-70

Document Type:

Article

Publication Date:

3/2012

Document Language:

English

Document ID (Org No.):

22306

Frequency:

Quarterly

pISSN:

20704658

Descriptors:

Keywords:

Abstract:

 A growing body of literature argues that competition increases banking efficiency. Using large datasets for Tunisians banks, we offer new empirical evidence of this causal relationship over the period 1990 to 2009. We use a three pronged approach. First, we use concentration tests to assess the level of competition in the Tunisian banking industry. Second, we estimate the level of efficiency of these banks using the stochastic frontier approach. Building on these results, and to check for robustness of our findings, we estimate several specifications to examine the relationship between competition and efficiency. The Tunisian banking system shows a high competition with an increasing tendency for all specifications and approaches. The study also provides evidence for an increasing efficiency mainly for private banks. The empirical results show that efficiency and competition go hand in hand within the Tunisian banking industry. Finally, the study findings show robust support to suggest that private banks display a better efficiency than state owned ones.

Article Details

Competition and Banking Efficiency : Evidence from Tunisian Banking Industry

Authors:

Ali , Mohamed Sami | Sghaier , Asma

Publisher:

Islami Bank Training and Research Academy

Main Topics:

Economics and Finance

Journal:

Journal of Islamic Economics, Banking and Finance 2012 Vol.8 Issue 1, pp.53-70

Document Type:

Article

Publication Date:

3/2012

Document Language:

English

Document ID (Org No.):

22306

Frequency:

Quarterly

pISSN:

20704658

Descriptors:

COMMERCIAL BANKS

COMMERCIAL CREDIT

ECONOMIC COMPETITION

EFFICIENCY

ECONOMIC GROWTH

MONETARY POLICY

COMPETITION

EVIDENCE

TUNISIA

Bank competition

Efficiency

Stochastic Frontier Approach

Issues

Article Details

Authors: Ali , Mohamed Sami | Sghaier , Asma

Publisher: Islami Bank Training and Research Academy

Main Topics: Economics and Finance

Journal: Journal of Islamic Economics, Banking and Finance 2012 Vol.8 Issue 1, pp.53-70

Document Type: Article

Publication Date: 3/2012

Document Language: English

Document ID (Org No.): 22306

Frequency: Quarterly

pISSN: 20704658

Descriptors:

Issues

Authors:

Ali , Mohamed Sami | Sghaier , Asma

Publisher:

Islami Bank Training and Research Academy

Main Topics:

Economics and Finance

Journal:

Journal of Islamic Economics, Banking and Finance 2012 Vol.8 Issue 1, pp.53-70

Document Type:

Article

Publication Date:

3/2012

Document Language:

English

Document ID (Org No.):

22306

Frequency:

Quarterly

pISSN:

20704658