In this paper, we tried to see if the Tunisian banks are ready to confront the different and main challenges of financial liberalization. The main objective of this paper is defined in this context. We investigate the cost efficiency of Tunisian universal banks over the period 1997–2006. We examine the influence of environmental variables on the bank cost-efficiency. We used a parametric approach stochastic “SFA”. | Financial liberalization (FL), environment variables and cost efficiency of Tunisian banking system
