The Performance of Saudi Banking Industry 2000 – 2011: Have the Banks distinguished themselves from one another?

Journal Article

• Magazine \ Newspaper: International Journal of Financial Research
• Issue Number: 2
• Volume Number: 5
• Pages: 121 -132

Publication Abstract

This paper studies the technical efficiency of Saudi banking sector using stochastic frontier model. A sample of 12

banks over the period 2000 - 2011 is selected to investigate their technical efficiencies in mobilizing deposits,

allocating investments and generating income. The banks are categorized as Saudi-owned banks, Saudi - foreign

owned banks and Islamic banks. The findings show some consistent pattern of these bank types; and there exist

significant disparities among the banks in terms of technical efficiency. The banque Saudi Fransi stands out as a

benchmark for the industry, and it is a Saudi -foreign owned bank type. The Saudi owned bank type has shown

fluctuating performance during the period; and the Islamic bank type is not significantly different from Saudi-owned

bank type.