IDEAS home Printed from https://ideas.repec.org/a/taf/rseexx/v34y2010i2p69-81.html
   My bibliography  Save this article

The Effect of the Shift in the Composition of Bank Income on Bank Efficiency

Author

Listed:
  • G van der Westhuizen

Abstract

Data Envelopment Analysis (DEA) is used to estimate and compare the performance of the four largest banks in South Africa over a period of ten years. Technical, allocative, cost and scale efficiency are estimated for each of the banks and for each year over the ten year period. Two models were used to estimate relative efficiency – one estimated relative efficiency with regard to interest income (Model 1) and another estimated relative efficiency with regard to noninterest income (Model 2).There are differences in relative efficiency with regard to interest income and noninterest income. On average all the banks experienced an improvement in technical efficiency moving from Model 1 to Model 2, but the majority of the banks experienced a deterioration in allocative efficiency. There are mixed results in the case of cost and scale efficiency. It is evident that noninterest income plays an important role in overall bank efficiency.

Suggested Citation

  • G van der Westhuizen, 2010. "The Effect of the Shift in the Composition of Bank Income on Bank Efficiency," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 34(2), pages 69-81, August.
    • Handle: RePEc:taf:rseexx:v:34:y:2010:i:2:p:69-81
    DOI: 10.1080/10800379.2010.12097205
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10800379.2010.12097205
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10800379.2010.12097205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rseexx:v:34:y:2010:i:2:p:69-81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rsee .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.