International Journal of Research in Economics and Social Sciences
  • Year: 2016
  • Volume: 6
  • Issue: 4

Did Reform Policy enhance the Efficiency of Banksoperating in Sudan? "Case Study Sixteen Banks in the Year 2014"

  • Author:
  • Khalafalla Ahmed Mohamed Arabi
  • Total Page Count: 15
  • Page Number: 56 to 70

Professor of, Econometrics and Social Statistics, King Khalid University, Kingdom of Saudi Arabia

Online published on 20 April, 2017.

Abstract

This paper aims at assessing the effects of Central Bank of Sudan (CBS) reform policy announced in early 2000 on the performance of Sudanese commercial banks. Data Envelopment Analysis (DEA)was applied on a sample of 16 banks for the year 2014. Reform policy has considerable success in reducing non-performing loans, raising capital adequacy, and improving banks ’infrastructure. The use of 9 inputs resulted in 14 efficient banks compared to only 5 as a consequence of using 5 inputs that suggested by Tobit analysis. Banks have been affected adversely by inflation, devaluation, and economic sanctions.

Keywords

capital adequacy, DEA, efficiency, infrastructure, reform, non-performing loans