A performance assessment of Mozambique banks: a Bayesian stochastic frontier
Authors
Luis A. Gil-Alaña
Carlos P. Barros
Dercio Mandlaze
Type
Article
Journal
Applied Economics
Pages
1-9
Country
Mozambique
Date
17-02-2017
Abstract
This article analyses the technical efficiency of Mozambican banks from 2005 to 2014 with a Bayesian stochastic frontier model. The intermediate approach is adopted and the results reveal that efficiency varies amongst the banks analysed. Foreign ownership of Mozambican banks is also analysed, as is public ownership, the role of mergers and acquisitions, big banks and active dividend policy within the context of bank costs. Policy implications are then derived.