Financial Efficiency of Licensed SACCOS in Arusha and Dar es Salaam Regions, Tanzania. An Evaluation of Financial Efficiency Levels, Trends, and License Category Variations (Published)
Licensed SACCOS in Tanzania face persistent challenges in attaining their full financial performance potential. This study evaluated the financial efficiency of licensed SACCOS in the Arusha and Dar es Salaam regions, Tanzania. A panel research design was used and Data Envelopment Analysis (DEA) was used to calculate financial efficiency. A bootstrap confidence interval for the mean efficiency was used to test whether the average efficiency differed significantly from 1. Random-effects Generalized Least Squares (GLS) was used to determine the trend in financial efficiency over the study period. The Mann–Whitney U test examined differences in financial efficiency between category A and category B SACCOS. Findings indicate that the average financial efficiency of licensed SACCOS (FeCRS = 0.38, FeVRS = 0.47, SE = 0.85) diverges significantly from 1. The findings also indicate no significant improvement in the financial efficiency of licensed SACCOS over the study period. Further results indicate significant variations in FeCRS, FeVRS, and FeSE between licensed SACCOS. This study contributes to the growing body of knowledge on licensed SACCOS and offers useful insights for managers, regulators, and policymakers seeking to enhance their financial efficiency. The study recommends strengthening cost-control mechanisms, improving the allocation of mobilized financial resources, promoting income diversification, and implementing category-specific managerial improvement strategies to enhance the financial efficiency of licensed SACCOS.
Keywords: Data Envelopment Analysis, Licensed SACCOS, category A SACCOS, category B SACCOS, financial efficiency
An Evaluation of Technical Efficiency Of Commercial Banks In Nigeria (A Dea Approach) (Review Completed - Accepted)
This study evaluated technical efficiency of the Nigerian commercial Bank between the years 2002 to 2011. Ten Nigerian Banks were randomly selected out of 15 banks quoted in Nigeria. Published financial statements of the banks were sourced from which data for our variables were ascertained for 10 years. For this intention, the Data Envelopment Analysis (DEA) model was used with three input variables, which are; (deposits, operating expenses, and assets.) and four output variable; which are (loan and advances, investment, Interest income, and non-interest income). This study adopted the intermediation approach in selecting the inputs and outputs above.
The results of the analysis showed that, some banks were found perfectly technical efficient with efficiency scores of 1.000 meaning (100%) efficiency, whereas those that were below 1.000 were less fully efficient. The mean technical efficiency, for the period examined stood at 0.938 (93.8%). This mean result meant that the Nigerian banking sector generally needs sound managerial attention. It is recommended therefore that the sound macroeconomic, sectorial and structural policies are applied to improve internal balance, ensure external sector performance and stimulate the productivity base and industrial sector of the Nigerian economy
Keywords: Data Envelopment Analysis, Decision-Making Units, Financial Intermediation, Technical Efficiency