Keywords : Foreign banks, Technical Efficiency, Constant Returns to Scale, Foreign Banks, Bank Efficiency Measurement

Abstract : The study Using Data Envelopment Analysis (DEA), to examines the average technical efficiency of foreign banks in varied working contexts under constant returns to scale, variable returns to scale and scale efficiency between 1991 and 2022. The findings indicate that average efficiency varied significantly over different periods: The post-liberalization reform stage from 1991to 1999, the consolidation and growth stage from 2000 to 2010, the post-global financial crisis stage from 2011 to 2019 and the following COVID-19 pandemic recovery period from 2020 to 2022. Efficiency was highest throughout the post liberalization period, with a CRS efficiency average of 0.709, but it showed considerable fluctuation post-2010 due to global economic disruptions. Coefficient variation reflects high variability, especially in recent years, indicating inconsistent performance mid banks. The study similarly examines the proportion of banks fall under a standard deviation of the mean efficiency., highlighting a marked shift from higher stability pre-2010 to increased variability thereafter. The bank’s distribution by CRS, DRS and IRS also underscores dynamic shifts in scale efficiencies across these periods. These trends underscore economics’ impact cycles on foreign bank effectiveness in the studied context.

Download