Abstract
This paper examines the technical efficiency of the Libyan banks over the period before and during financial liberalisation (1998-2009). The non-parametric technique Data Envelopment Analysis (DEA) is used. Under the assumption of variable returns to scale, the overall technical efficiency is decomposed into pure technical efficiency and scale efficiency. The findings indicate that, in general, technical efficiency of the Libyan banks was not high. The technical efficiency and its components were found to be negatively influenced in this respect by financial liberalisation. They declined during financial liberalisation.