Ownership type and technical efficiency of banks in Côte d’Ivoire: parametric and non-parametric evidence

Abstract

This study evaluates the technical efficacy of Côte d’Ivoire’s banks from 2005 to 2019, accounting for the effect of shareholding. The technical efficiency of the Ivorian banking system became much more efficient after 2012, according to the results of a Tobit random-effects model using the DEA and SFA methods. Additionally, private and foreign shareholding significantly and favorably influences technical efficiency, according to the study. We suggest that actions be taken to allow local and foreign private partners to purchase shares in Ivorian public banks, based on these findings.

Keywords

• technical efficiency
• shareholding
• dea
• sfa
• tobit model
• bank