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This paper aims to measure the efficiency of Pan African Commercial Banks using Malmquist Data Envelopment Analysis Methods (DEA) over the period 2010-2015. Malmquist DEA methods are used to calculate indices of total factor productivity change; technological change; technical efficiency change and scale efficiency change. According to empirical findings, the total factor productivity of Pan African Commercial banks declined over the study period. The main cause of the decline in total factory production was due to a reduction in technological efficiency. It is therefore recommended that Pan African Commercial banks substantially upgrade technology. Moreover, there is an increase in the technical efficiency of Pan African Commercial Banks over the study period. On average the technical efficiency of the Pan African commercial banks is largely contributed by the scale efficiency than pure technical efficiency. Therefore, Pan African Commercial banks should enhance managerial efficiency.
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In-Text Citation: (Cheriye, 2020)
To Cite this Article: Cheriye, A. B. (2020). Measuring the Efficiency of Pan African Commercial Banks: An Application of Malmquist DEA Methods. International Journal of Academic Research in Business and Social Sciences. 10(8), 942-954.
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