Title: The consideration of Off-Balance Sheet activities on banking efficiency and productivity performances within the UAE

Authors: Bruce Q. Budd

Addresses: College of Business Sciences, Zayed University, P.O. Box 19282, Dubai, UAE

Abstract: Despite overall growing profits and increasing Total Factor Productivity (TFP) change in the United Arab Emirates banking sector, research reveals evidence of over-banking and inefficiency by the sector as a whole and several banks in particular. The inclusion of Off Balance Sheet (OBS) activities increases efficiency scores and estimated productivity levels for most banks, reinforcing the prevailing view that the exclusion of non-traditional activities leads to a misspecification of banks| output.

Keywords: bank efficiency; DEA; data envelopment analysis; Malmquist total factor productivity; TFP change index; off-balance sheet items; UAE; United Arab Emirates; productivity performance; banking; bank output; emerging markets.

DOI: 10.1504/IJBEM.2009.023920

International Journal of Business and Emerging Markets, 2009 Vol.1 No.4, pp.315 - 340

Available online: 18 Mar 2009 *

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