The effect of bank efficiency on bank performance in deposit money banks in Nigeria.

Powel Maxwell Worimegbe, Morruf Sanjo Oladimeji, Benneth Uchenna Eze

Abstract


This study explored the effect of bank efficiency on bank performance. This study looks at transactional, operational, and profit efficiency in relation to bank performance using the dupoint analysis. Fifteen (15) deposit money banks were sampled. Data analyzed was through a secondary medium from bank financial statements. The Data envelopment analysis and structural equation model were used in data analysis. The result reveals that international banks were more efficient than national and regional banks in terms of transactional, operational and profit efficiency. The result also shows that operational efficiency is the most significant determinant of bank efficiency. This study recommends that DMBs should explore ways to be more operationally efficient. DMBs should also move towards new distribution platforms.


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References


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