<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</abstract>

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.

Determinants of operational efficiency: the case of Saudi Banks

Department of Economics & Finance, College of Business Administration

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Determinants of operational efficiency: the case of Saudi Banks"}

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...

Determinants of operational efficiency: the case of Saudi Banks

Published Online: Sep 30, 2022

Page range: 11 - 20

Received: Jan 03, 2022

Accepted: Jul 20, 2022

DOI: https://doi.org/10.2478/fiqf-2022-0016

Keywords
banks, operation efficiency, capital adequacy, liquidity, vision 2030

© 2022 Shoaib Khan, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Determinants of operational efficiency: the case of Saudi Banks

Published Online: Sep 30, 2022

Page range: 11 - 20

Received: Jan 03, 2022

Accepted: Jul 20, 2022

DOI: https://doi.org/10.2478/fiqf-2022-0016

Keywordsbanks, operation efficiency, capital adequacy, liquidity, vision 2030

© 2022 Shoaib Khan, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
banks, operation efficiency, capital adequacy, liquidity, vision 2030