A Bayesian Efficiency Analysis of Angolan Banks. (26th April 2016)

• Record Type: Journal Article
• Authors: Barros, Carlos Pestana; Leão, Emanuel Reis; Macanda, Nkanga Pedro João; Mendes, Zorro
• Is Part Of: South African journal of economics. Volume 84:Number 3(2016:Sep.)
• Page Start: 484
• Page End: 498
• Publication Date: 2016-04-26
• Subjects: C11 -- G21 -- D22; Angola -- banks -- stochastic frontier; Economics -- Periodicals; South Africa -- Economic conditions -- Periodicals; Économie politique -- Périodiques; Afrique du Sud -- Conditions économiques -- Périodiques; Economie; ECONOMICS; Electronic journals; 330.5
• DOI: 10.1111/saje.12124
• Languages: English
• ISSNs: 0038-2280

Abstract

Abstract: This article studied the technical efficiency of Angolan banks from 2005 to 2012 using a Bayesian stochastic frontier model. The intermediation approach to banking was adopted. The results revealed that Angolan banks were very efficient and that efficiency varies little among the banks analysed. Furthermore, the differences in efficiency between foreign banks, public banks, large‐sized banks and banks that belong to a local conglomerate were examined. It was concluded that the greatest efficiency was to be found in the case of foreign banks. Since size and conglomerate membership do not seem to lead to greater bank efficiency, it was proposed that Angolan policymakers should promote competition in the banking sector.