Abstract

The purpose of this article is to assess the effect of competition on banking efficiency in developing countries and particularly some countries of the CEMAC during the period 2000- 2013 To achieve this our methodological approach is structured around two stages First we calculate the banking efficiency levels using the non-parametric input-oriented DEA method with variable returns to scales Second we assess the effect of competition as measured by the CR3 concentration ratio on efficiency levels using a Tobit model The results reveal a negative effect of competition on bank efficiency