Efficiency in the MENA banking industry, the stochastic frontier approach (SFA)

The main focus of this paper is the study efficiency in Middle Eastern and North African (MENA) banking industries throughout period 1999-2017. many other regions reveals existence failures allocation resources for sectors which results appearance inefficiency terms cost. empirical results, using a parametric cost frontier applied, show fluctuating yet improving MENA are used to rank by country over years (1999- 2017). Promoting strong stable system reduces uncertainties systemic risk leads greater efficiency. A efficient then, necessary, economic development. Since 1990s, due reforms required supervisory authorities, banks region have faced structural changes tried develop their activities seeking enter new markets activity order adapt institutional environment adopting internal / or external growth strategies. These strategies can increase market power diversify industries’ achieve gains.