Determinants of operational efficiency: The case of Saudi banks

Artikel

The study determines the factors that can affect the operational efficiency of Saudi commercial banks. It uses the data of listed banks from the period 2010 to 2017. The panel data estimation technique of pooled ordinary least squares is used with random and fixed effects estimations to find the significant factors. Based on the Hausman test (1978) fixed effects estimation results are used for discussion. The operational efficiency of Saudi banks is influenced by the same factors highlighted for different economies, with a certain exception. Capital adequacy, profitability, and bank size have an adverse influence on operational efficiency. Contrary to this it is positively related to liquidity and asset quality. The results of the study will be useful for policymakers and bank managers to support the effective role of banks in the improvement of the financial sector which is also part of the Kingdom\'s vision 2030 development plan.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Financial Internet Quarterly ; ISSN: 2719-3454 ; Volume: 18 ; Year: 2022 ; Issue: 3 ; Pages: 11-20 ; Warsaw: Sciendo

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Institutions: Design, Formation, Operations, and Impact ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General
• Subject: banks ; operation efficiency ; capital adequacy ; liquidity ; vision 2030

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Khan, Shoaib
• Event: Veröffentlichung
• (who): Sciendo
• (where): Warsaw
• (when): 2022

Further information

• DOI: doi:10.2478/fiqf-2022-0016
• Handle: http://hdl.handle.net/10419/266908
• Last update: 10.03.2025, 11:44 AM CET