Impact of Yemeni crisis on Efficiency of Yemeni Banks – Using (DEWA) approach

Abstract

The purpose of this study is to examine the efficiency level of Yemeni banks in pre and post Yemeni crisis. The banking intermediation approach was considered to choose the study inputs and outputs through unique panel data set of banking sector in Yemen over the period (2006-2015). It allows to study the variations in the efficiency of banks before and after Yemeni crisis. For the purpose of data analysis; nonparametric efficiency approach Data Envelopment Windows Analysis (DEWA) was applied. The average efficincy results before Yemeni crisis (2006-2010) reveal that Yemeni conventional banks are more efficient than Islamic banks in term of their inputs producing actual outputs. On the other hand  the average efficincy results in post Yemeni crisis (2011-2015) indicate that Islamic banks are more efficient after Yemeni crisis than conventional banks. It is recommended that banks managers should increase their banks efficiency by improving resources utilization to produce optimal outputs.