Measuring the technical efficiency in Algerian commercial banks : from a mediation approach by using stochastic frontier analysis

Abstract EN

The bank is a financial intermediary between depositors and borrowers ; his role is to raise funds to convert them into credits.

from this perspective, loans are considered as output while deposits are included in the list of inputs.

accordingly, this study dealt with measuring the technical efficiency of commercial banks in Algeria from the perspective of mediation, where the model for analyzing the limits of the random sample was SFA as a parametric technique tool used in the operating Algerian banks, the study was limited to the period between 1975-2019 as the period of advancement of the banking sector after the reforms it witnessed.

the results showed that the average technical efficiency of the Algerian commercial banks from the perspective of mediation during the study period was estimated at 24.13%, which represents a small percentage because of the lack of optimal employment of inputs (deposits), which reflects the poor management of the movement of funds in the national economy.