The Tunisian Central Bank’s Efficiency Benchmarks: A Dynamic Approach

The topic of banking performance and efficiency has received considerable attention, yet there is a noticeable gap in examining the performance and efficiency of central banks. Moreover, there is a scarcity of studies on central bank efficiency. This paper aims to investigate the factors that influenced the efficiency of the Central Bank of Tunisia from 2000 to 2020, using an Autoregressive Distributed Lag Model. The appropriate econometric methodology was first established to achieve this goal, after which the model's results were presented and interpreted. The study's findings indicate that the Tunisian Central Bank’s efficiency is influenced by several macroeconomic (inflation, public deficit, growth rate), international (exchange rate, foreign debt), and political variables (political and government instability, conflict of interest), each with a varying degree of impact. Interestingly, the transition of the Central Bank of Tunisia from a dependent to an independent institution in 2016 did not yield a notable change in efficiency.Copyright© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.