Abstract

This work focuses on the performance of the banking sector through the analysis of the efficiency of Tunisian commercial banks according to intermediation approach. To measure the cost inefficiencies in banks in Tunisia, we use a translog specification for single-product cost function. The estimated cost efficiency shows a strong correlation between positive and significant efficiency scores according to the approaches (SFA) and (SFAA). The empirical results show that the efficiency cost, depending on the approach SFAA has evolved mixed between 1993 and 2010. Regarding the estimation of efficiency depending on the size of banks, the results show that banks in small and medium size of our sample show medium cost efficiencies better than those made by banks in large sizes. While on the side of profit estimates show that banks of large and medium sizes are more efficient than banks of smaller sizes. Internal determinants of the productive performance of Tunisian banks show that the preponderance of credit activity in relation to other outputs represents a source of efficiency for banks.

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