Custo x-eficiência e eficiência de escala no sector bancário angolano

Manuel Maria  Dias

Authors

Manuel Maria Dias Faculdade de Economia da Universidade José Eduardo dos Santos https://orcid.org/0000-0001-8470-4272

Keywords:

Cost X-efficient, Scale Efficient, Stochastic Frontier Approach, Angolan Banks

Abstract

The objective of this paper is to analyse the Cost X-efficiency and Scale efficiency in the Angolan banking sector over the period 2007-2017. For this purpose, it was applied the Stochastic Frontier Approach (SFA) method, with the distribution of inefficiency in two forms, namely: Half-Normal and Truncated-Normal distributions. The sample consists of 22 commercial banks, which comprises of 184 observations. The results show that the Half-Normal and Truncated-Normal models have a Cost X-efficient of 83%, respectively. The results also reveal that foreign private banks are the most efficient and the least efficient are state-owned banks. In the second stage, it was analysed the effect of control and market variables on Cost X-efficiency and the results shows that non-performance loans , liquidity risk, oil exports, GDPpc and bank nationalization influences the Cost X-efficiency. The results shows that in a global analysis, Angolan banks operate at the optimal scale, representing an overall Scale Efficient of one (1). When the sample is divided into groups, it was observed that small banks operate on a Scale Efficient of one (1). As for shareholder ownership banking, private domestic banks operate at a constant return to scale.

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