Efficiency Of Resource Utilization ByThe Sudanese Private Banks A case Study of Export Development Bank 1993-2001 Formerly, (Elgharb Islamic Bank

Abstract

The issue of this research is " efficiency of resource utilization by the Sudanese private banks with reference to the case of Export Development Bank, (formerly, Elgharb Islamic Bank) for the period 1993 to 2001. The hypothesis of the research are the following: Firstly, although EDB is one of the early Sudanese private banks, but also it is the least one in utilizing its resources, and the consequences were the accumulated losses during the period (1995-2001). Secondly, because of the weak repetitive financial performance overtime, the bank is inefficient to overcome any shocks or probable crises. In order to test the research hypothesis, traditional financial ratios such as :liquidity, expenses/revenues, return on shareholders equity, return on assets, assets quality and debt-equity were used in comparison with that of the private banks. Simple average method is used for purposes of calculating the industry indicators necessary for comparison, and the statistical results have assured the existence of significant differences between the EDB average ratio (which were the worse ratios except that of the debt- equity ratios as a result of increase of capital in 2001 from SD.D 327931 thousand to SD.D 2506769 thousand) and the corresponding average in private banks. For example, the industry average ratio for liquidity was 74%, while that of the EDB was 231%. The expenses/revenues ratio of the industry was 88%, where as the EDB ratio was 219% ..etc. According to the findings of the research, the following economical, managerial, technological and technical recommendations has to be taken in to consideration: The necessity of strengthening the financial position of the bank through the increase of capital, building of reserves or merger. The utilization of the available resources in the productive projects which have sufficient guarantees and according to sufficient feasibility studies. The appointment of provisional bankers as top management. The distribution of labor force according to experiences and qualifications with charging the suitable one for leadership. The enhancement of training and rehabilitation of employees. The necessity of developing the network system to overcome traditional practices. The strengthening of internal control system