Technical Efficiency in the Angolan Banking Sector with the B-convexity Model

Abstract

This paper analyses technical efficiency in Angolan banks from 2005 to 2010 with an innovative production frontier model, the inline image model. The intermediate approach is adopted. It is observed that the efficiency increases over the observation period, according to the international experience, market share and local markets. Policy implications indicate that competition and governance should be promoted in order to increase efficiency.