Mesure de l’Efficience Economique des banques commerciales Algériennes

Abstract

This paper aims at measuring the cost efficiency of Algerian commercial banks over the 2003-2015 period. We rely on the Stochastic Frontier Analysis SFA approach to estimate a cost frontier function using a simultaneous equation system. The results suggest that Algerian banks are wasting 54,25% of potential resources it could be saved during the production process. The results also show that bank efficiency has gradually declined during the period and that state-owned banks are more cost efficient than private banks which reflects the importance of economies of scale in reducing costs.