Analysing Bank Efficiency Incorporating Internal Risks: A Case of Jordan
This paper aims to estimate the efficiency of commercial and investment banks during 2004- 2013 in Jordan during the global financial crisis. Also, it aims to test the influence of internal variable on banks efficiency during the same period. The study promotes a qualitative method adopting an empirical data in measuring banks efficiency in Jordan. Data are collected from INCIEF digital library and ASE database for 13 Jordanian banks over the period 2004-2013. Data are analyzed using super- SBM and stochastic frontier regression SFA. The findings indicate that the overall Jordanian banks were found to be inefficient (2004- 2013). Moreover, the internal variables were found to be significant in all inputs.