Shoaib Khan
pages: 11-20;
JEL classification: G21, D02, E50;
Keywords: banks, operation efficiency, capital adequacy, liquidity, vision 2030;
Abstract: The study determines the factors that can affect the operational efficiency of Saudi commercial
banks. It uses the data of listed banks from the period 2010 to 2017. The panel data estimation
technique of pooled ordinary least squares is used with random and fixed effects estimations to
find the significant factors. Based on the Hausman test (1978) fixed effects estimation results are
used for discussion. The operational efficiency of Saudi banks is influenced by the same factors
highlighted for different economies, with a certain exception. Capital adequacy, profitability, and
bank size have an adverse influence on operational efficiency. Contrary to this it is positively related to liquidity and asset quality. The results of the study will be useful for policymakers and
bank managers to support the effective role of banks in the improvement of the financial sector
which is also part of the Kingdom\'s vision 2030 development plan.