Measuring the Efficiency of Libyan Commercial Banks Using the Data Envelopment Analysis

The main objective of thisstudyis to measurebankingefficiency of Libyanbanksduring 2010-2019. The studyemploys Data EnvelopmentAnalysis (DEA) input-orientated model. Constat Return to Scale (CRS) and Variable Return to Scale (VRS) wereused to measure the relative efficiency. The result shows that the Libyanbanks do not manage their sources efficiently, the average of overalltechnicalefficiency of Libyanbanksis 84.1%, whichmeanstherewaswaste of 15.9% of input, in addition, average of PTE and SE 93%, 90.6% respectively. The findings indicate that private banks are more efficient than state banks, also large banks are more efficient thansmallbank.