Khartoum University Journal of
Management Studies

OFFICIAL PUBLICATION OF THE SCHOOL OF MANAGEMENT STUDIES, UNIVERSITY OF KHARTOUM
  • Abbreviation: Khartoum Univ. J. Manage. Stud.
  • Language: English
  • ISSN: 1585-8069
  • DOI: 10.5897/KUJMS
  • Start Year: 1994
  • Published Articles: 33

Review

Efficiency of the banking sector in Sudan: A review paper

Mai Mahmoud Abdo
  • Mai Mahmoud Abdo
  • School of Management Studies, University of Khartoum, Sudan.
  • Google Scholar


  •  Received: 02 September 2017
  •  Accepted: 05 February 2018
  •  Published: 30 March 2018

Abstract

This paper aims to review published research studies on efficiency performance of the banking sector in Sudan. The methodology in the reviewed articles can be grouped into two categories. The first category employs the non-parametric data envelopment analysis (DEA) while the second category uses the parametric stochastic frontier analysis (SFA). The findings in the reviewed articles reveal that, although the efficiency performance of banks operating in Sudan had improved through time, the overall performance of the banking sector remains inefficient. The main source of inefficiency is managerial inefficiency, which is lack of optimum allocation of financial resources as evidenced in scale inefficiency, arising from increasing return to scale. Another source of inefficiency indicated in these studies is allocative inefficiency arising from sub-optimum mix of inputs. This latter inefficiency implies that the banks in Sudan are not keen to adopt cost minimizing approaches.

Key words: Efficiency, data envelopment analysis (DEA), stochastic frontier analysis (SFA), banks, Sudan.