Trends in the Efficiency of Angolan Commercial Banks Outside the Top Ten: A DEA Window Analysis

Abstract

The objective of this study is to analyze the trend in the efficiency levels of Angolan commercial banks, whose asset size means that they are not included in the group of the ten largest. The DEA methodology was adopted, with the application of input-oriented radial models, namely: CRS and VRS, based on the efficiency averages obtained between windows. The sample included banks that, due to the small size of their assets, their performance has not been the subject of systematic analysis. The results obtained indicate that although the average of the scores for pure technical efficiency is higher than the average of the scores for technical efficiency of scale, in the period (2016-2023), pure efficiency presents an upward trend, contrary to scale efficiency which presents a downward trajectory, and that the uncertainty associated with the observance of the identified trends is greater for the average scores obtained for scale efficiency than for pure efficiency.