A performance comparison between state-owned, mixed and private banks in Algeria

Abstract

While an important effort has been dedicated in explaining the differences in terms of performance between state-owned, mixed and private enterprises, some nuances still remain. In this study, we compare Algerian banks’ performance according to their ownership structure using Data Envelopment Analysis (DEA). We find that private banks in average perform more efficiently than their public and mixed counterparts. Furthermore, our results indicate that public and mixed banks have a weak ability in terms of resource usage while private banks mostly operate at a non-suitable size. Our aim is to contribute to the broader area of firms’ performance while providing relevant insights to Algerian policy makers and regulators.

Keywords: Banking ownership; performance measurement; Data Envelopment Analysis, ownership structure.