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Measuring the impact of restructuring and country-specific factors on the efficiency of post-crisis East Asian banking systems: Integrating DEA with SFA

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  • Thoraneenitiyan, Nakhun
  • Avkiran, Necmi K.
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    Abstract

    This paper investigates the relationship between post-crisis bank restructuring, country-specific conditions and bank efficiency in Asian countries from 1997 to 2001 using an approach that integrates data envelopment analysis and stochastic frontier analysis. We focus on restructuring measures related to bank ownership. The results indicate that although domestic mergers produce more efficient banks, overall, restructuring does not lead to more efficient banking systems. Banking system inefficiencies are mostly attributed to country-specific conditions, particularly, high interest rates, concentrated markets and economic development.

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    Bibliographic Info

    Article provided by Elsevier in its journal Socio-Economic Planning Sciences.

    Volume (Year): 43 (2009)
    Issue (Month): 4 (December)
    Pages: 240-252

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    Handle: RePEc:eee:soceps:v:43:y:2009:i:4:p:240-252

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    Web page: http://www.elsevier.com/locate/seps

    Related research

    Keywords: Bank restructuring Environmental factors Bank efficiency DEA SFA;

    References

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    Cited by:
    1. Hall, Maximilian J.B. & Kenjegalieva, Karligash A. & Simper, Richard, 2012. "Environmental factors affecting Hong Kong banking: A post-Asian financial crisis efficiency analysis," Global Finance Journal, Elsevier, vol. 23(3), pages 184-201.
    2. Fethi, Meryem Duygun & Pasiouras, Fotios, 2010. "Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey," European Journal of Operational Research, Elsevier, vol. 204(2), pages 189-198, July.

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