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Browsing Department of Economics by Author "Alsarhan, Abdulwahab, author"
Measurement and analysis of banking efficiency has received increasing attention in applied economics in recent years due to the rapid globalization of the financial industry and consequently, increasing competitiveness in international financial markets. Efficiency in a general term in economics describes how well a system performs in generating the maximum output for given inputs. Efficiency in banking industry terms is measured as the difference between the bank's position and its best production frontier. There are two main techniques that are used to evaluate banking efficiency, parametric methods and non parametric methods. The debate on which approach is more convenient for analyzing the efficiency of the banking industry is still open and has been the subject of many applied works (Luciano and Regis 2007).