COST AND PROFIT EFFICIENCY AND MANAGEMENT BEHAVIOUR OF COMMERCIAL BANKS (EVIDENCE FROM TANZANIA)
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 10
Abstract
Using non-parametric technique (the Data Envelopment Analysis - DEA) for data from 1998 to 2011, we investigate the cost and profit efficiency and management behaviour of 25 Tanzanian commercial banks. We examine the influence of ownership, bank profile, size, and corporate structure on bank efficiency. The overall results show that commercial banks in Tanzania are relatively more profit efficiency than cost efficiency. Domestic banks appear to be more cost efficient while foreign banks appear to be more profit efficient. Big banks found to be more cost and profit efficient compared with small banks, and listed banks appear to be more cost efficient than unlisted banks. On management behaviour, commercial banks are found to neither support ?bad management?? nor ?bad luck?? hypothesis.
Authors and Affiliations
Said Seif Mzee| Department of Finance and Accounting, Zanzibar Institute of Financial Administration, Masoud Rashid Mohamed| Department of Economics, Zanzibar University
Keywords
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