Determinants of Efficiency in the Malaysian Banking Sector: Evidence from Semi-parametric Data Envelopment Analysis Method

2016 ◽  
Vol 4 (2) ◽  
pp. 151-172 ◽  
Author(s):  
Fadzlan Sufian
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Panel Regression ◽  
Analysis Method ◽  
Bank Efficiency ◽  
Panel Regressions ◽  
Parametric Data ◽  
The Impact

This article follows Simar and Wilson’s (2007 , Journal of Econometrics, 136(1), 31–64) two-stage procedure to analyse the efficiency of the Malaysian banking sector. In the first stage, we employ the data envelopment analysis (DEA) method to compute the efficiency of individual banks during the period 1999–2008. We then use panel regressions to examine the impact of ownership on bank efficiency while controlling for the potential impacts of contextual variables. The DEA results indicate an increase in efficiency over the sample period. The results from the panel regression suggest that productive efficiency is positively related to bank size, capitalization and foreign ownership. On the other hand, the publicly listed and government-owned banks have been relatively inefficient in their intermediation function.

scholarly journals THE EFFICIENCY OF BANKING SECTOR: THE EVIDENCE FROM AZERBAIJAN

InterConf ◽  
2021 ◽  
pp. 63-71
Author(s):  
Ulvi Yagubov Makhdut
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
The Other ◽  
Data Envelopment ◽  
Analysis Method ◽  
Other Hand

In this study, the Azerbaijani banking sector was researched for the post-COVID19 period. On the other hand, data envelopment analysis method and models were also learned. In this paper, we analyzed the top 10 banks of Azerbaijan in terms of assets for 2021 and as a result of the study, 4 banks are efficient and 6 banks are not. The analysis was carried out using the Data Envelopment Analysis method for the 3rd half of 2021 based on the data of the five largest banks for total assets in the Azerbaijan. In this analysis, we used the CCR (Charnes Cooper Rhodes) model of the Data Envelopment Analysis method with the DEA Solver application. As a result of the analysis, 4 banks were efficiency 6 banks were found to be inefficiency and target points were identified for inefficiency banks.

scholarly journals An Evaluation of the Technical Efficiency of the Selected Commercial Banks with the Usage of the CCR-DEA Model under the Conditions of Acquisitions in the Banking Sector

2020 ◽  
Vol 54 (1) ◽  
pp. 77
Author(s):  
Anna Pyka
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Linear Form ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Dea Model ◽  
The Impact ◽  
Ccr Model

<p>The aim of this article is to evaluate the technical efficiency of the chosen commercial banks, which in the years 2014–2016 were participants in acquisitions in the banking sector, with the usage of the Data Envelopment Analysis (DEA) model. The DEA model was modified through reshaping the linear form using the Charnes, Cooper, and Rhodes (CCR) model, which is aimed at expenditures. Particular attention was paid to the impact of acquisitions in the banking sector on the improvement or deterioration of the technical efficiency of banks that act as acquiring banks.</p>

scholarly journals Measuring Bank Efficiency: Evidence from the Tanzanian Banking Sector

2013 ◽  
Vol 8 (1) ◽  
pp. 1239-1251
Author(s):  
Zawadi Ally ◽  
Dr. G.N. Patel
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Data Envelopment ◽  
Parametric Approach ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Constant Return ◽  
Crs Model

The objective of this study is to measure the efficiency of commercial banks in Tanzania using a non-parametric approach, the input-oriented data envelopment analysis (DEA), both by constant return to scale (CRS) and variable return to scale (VRS). For this purpose, two outputs representing total loans and total interest income, and three inputs representing total deposits, the number of employees and total expenses are selected for seven-years (2006-2012) period in the analysis. The findings under CRS model identify four banks to be fully efficient in the year 2006, two banks in 2007 and one bank in 2008, 2009, 2010, 2011 and 2012, while VRS model results identify five banks to be fully efficient in the year 2006 and 2012, three banks in 2007 and two banks in 2008 and 2009, one bank 2010 and 2011. Four banks, Standard Charted bank, National Commercial Bank (NBC), Citibank and Barclays bank are found to be the most efficiency banks in Tanzania, which serve as the benchmark peers for inefficient banks in the sample, In addition Tobit regression has been used to determine the efficiency drivers.

scholarly journals Analysis of the efficiency of insurance companies in Indonesia

2022 ◽  
Vol 11 (2) ◽  
pp. 105-112
Author(s):  
Zaenal Abdin ◽  
R. Mahelan Prabantarikso ◽  
Edian Fahmy ◽  
Ahmad Farhan
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Banking Sector ◽  
System Stability ◽  
Insurance Companies ◽  
Positive Trend ◽  
Data Envelopment ◽  
General Insurance ◽  
Parametric Data ◽  
Efficiency Performance

Financial system stability is not only supported by the banking sector, but also the role of insurance companies that operate efficiently. The study aims to analyze the efficiency performance of general insurance companies using two stages of data envelopment analysis during the 2017 – 2018 period. The first stage of efficiency measurement using a non-parametric data envelopment analysis (DEA) approach shows the efficiency level of general insurance companies experiencing a positive trend. The performance of general insurance companies in 2018 was more efficient than in 2017 based on the value of technical efficiency (CRS) and the value of pure technical efficiency (VRS). This means that in general there has been an increase in the efficiency of general insurance companies in Indonesia from 2017 to 2018. Testing the efficiency determinants in the second stage using the Tobit regression model found that the cost ratio is the only factor that significantly influences the efficiency level of general insurance companies in Indonesia. Meanwhile, company ownership and investment adequacy ratio have no significant effect on the efficiency level of general insurance companies in Indonesia. The results of the study provide recommendations to the management of general insurance companies that efficiency performance has not reached the maximum, and to improve it, it is necessary to control costs without disturbing routine operations and development activities.

Measuring the Efficiency of Marketing Efforts in the Indian Pharmaceutical Industry using Data Envelopment Analysis

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
M. Dash ◽  
A. Bose ◽  
S. Shome ◽  
S. Mondal ◽  
M.G. Majumdar ◽  
...  
Keyword(s):  
Data Envelopment Analysis ◽  
Sales Performance ◽  
Pharmaceutical Companies ◽  
Data Envelopment ◽  
Panel Regression ◽  
Model Data ◽  
Huge Amount ◽  
Using Data ◽  
The Impact ◽  
Indian Pharmaceutical Industry

Pharmaceutical companies have been spending huge amount of money on marketing and promotions, sales distribution, and traveling done by the sales representatives. However, they find it difficult to directly link the returns with these efforts. This study makes an attempt to examine whether the marketing efforts have significant influence on the sales performance in the industry. It uses the DEA model (Data Envelopment Analysis) to assess the efficiency of marketing efforts by pharmaceutical companies, and uses random effects maximum likelihood panel regression to assess the significance of the impact of marketing efforts.

Global Financial Crisis and Banking Sector Efficiency: The Indian Perspective

2014 ◽  
Vol 1 (1) ◽  
pp. 90-109
Author(s):  
Seema Garg
Keyword(s):  
Data Envelopment Analysis ◽  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Data Envelopment ◽  
Crisis Period ◽  
International Financial Crisis ◽  
Indian Banks ◽  
The Impact

Banks play a crucial role in developing and least developed economies by facilitating in trade finance. Banks established an important linkage in international trade by guaranteeing international payments and thereby reducing the risk of trade transactions. The Banks in India has witnessed a significant growth, specialization and diversification since the initiation of financial sector reforms in 1991and further slowdown in the economy as a result of global financial crisis in 2008-2009. This study examines the performance of Indian banks using data envelopment analysis. Though, there are large number of literature have been published on banking efficiency, This is an attempt to investigate the impact of global financial crisis on performance of Indian banking sector. The sole objective of this study is to exhibit, utilizing empirical data, the quantum to which the global financial crisis had an impact on the performance of the Indian banking industry. This study gives a comparative empirical analysis of the technical efficiency of Indian commercial banks during pre and post crisis period covering 2005-2012 using non parametric technique i.e. Data Envelopment Analysis (DEA). This period is consisting of pre and post global crisis period which is characterized by far reaching experience of crisis period (2008-2009) and its impact on the efficiency of the Indian banking sector. Overall, the results reveal that the effect of international financial crisis on the Indian banks has not been significant. Instead, the analysis reveals there is a statistically insignificant improvement in the efficiency of Indian banks’ following international financial crisis. Furthermore, the paper shows that the commercial banks have a high degree of resilience and stability.

Does E-Business Services Enhance Bank Efficiency in Taiwan?

2022 ◽  
Vol 14 (1) ◽  
pp. 0-0
Keyword(s):  
Data Envelopment Analysis ◽  
Crucial Role ◽  
Data Envelopment ◽  
Mobile Banking ◽  
Business Services ◽  
Bank Efficiency ◽  
Banking Services ◽  
Positive Effects ◽  
The Impact ◽  
Better Than

This study investigates the impact of e-business services on bank efficiency in Taiwan from 2008 to 2019, using the Data Envelopment Analysis (DEA) technique concerning e-business activities as outputs or do not. Comparing two models, these findings show that efficiency scores with e-business output were significantly better than those without e-business outputs, implying that e-business outputs play a crucial role in evaluating bank efficiency. The findings show that e-payment services have brought positive effects to bank efficiency, and that mobile banking services increase the frequency of banking transactions performed by customers, leading to increased bank efficiency.

scholarly journals Analisis efisiensi industri perbankan Indonesia setelah merger dan akuisisi: Pendekatan data envelopment analysis

2020 ◽  
Vol 19 (2) ◽  
pp. 159-168
Author(s):  
Yoshua Harbyanto Sipangkar ◽  
Estro Dariatno Sihaloho
Keyword(s):  
Data Envelopment Analysis ◽  
Mergers And Acquisitions ◽  
Credit Risk ◽  
Capital Adequacy ◽  
Data Envelopment ◽  
Risk Capital ◽  
Bank Efficiency ◽  
Section Method ◽  
Efficiency Calculation ◽  
The Impact

This article de termines the factor that influences bank efficiency after mergers and termines the factor that influences bank efficiency after mergers and termines the factor that influences bank efficiency after mergers and acquisitions. The efficiency calculation uses Data Envelopment Analysis (DEA) approach. To test the factors, we use crossacquisitions. The efficiency calculation uses Data Envelopment Analysis (DEA) approach. To test the section method in the first three years after mergers and acquis acquisitions. The efficiency calculation uses Data Envelopment Analysis (DEA) approach. To test the section method in the first three years after mergers and acquis itions. The studies are analyzing the impact of identical factors with bank characteristics such as governance, credit risk, capital adequacy, and loan intensity on bank efficiency, herewith total assets as a control section method in the first three years after mergers and acquis studies are analyzing the impact of identical factors with bank characteristics such as governance, credit risk, capital adequacy, and loan intensity on bank efficiency, herewith total assets as a control variable. The result shows that governa studies are analyzing the impact of identical factors with bank characteristics such as governance, credit risk, capital adequacy, and loan intensity on bank efficiency, herewith total assets as a control variable. The result shows that governa nce and credit risk have no significant effect on bank efficiency nce and credit risk have no significant effect on bank efficiency after mergers and acquisitions. Capital adequacy has a positive and significant effect on bank efficiency in the first three years after mergers and acquisitions. Loan intensity has a positi ve and after mergers and acquisitions. Capital adequacy has a positive and significant effect on bank efficiency in the first three years after mergers and acquisitions. Loan intensity has a positi significant effect on bank efficiency in the second and third years.

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