Abstract
This study investigates the impact of financial liberalisation on productivity change in Libyan banking over the period 1998-2009. Data Envelopment Analysis (DEA) based on the Malmquist index is utilized to evaluate commercial banks over the period. The productivity index is decomposed into its components: technical change, technological change, pure technical change and scale efficiency change. The findings indicate that on average the productivity growth of Libyan banks is 1.06, and the main source of progress is technological change and scale change. In addition, the productivity improved by 15.2% during deregulation period.