Advanced Search
MyIDEAS: Login to save this article or follow this journal

Performance of Financial Institutions in Bhutan

Contents:

Author Info

  • Dil Bahadur Rahut

    ()
    (Assistant Professor, South Asian University, New Delhi, India)

  • Ivan Velasquez Castellanos

    ()
    (Bolivia Country Programme Coordinator, Konrad Adenauer Stiftung (KAS))

  • Pravakar Sahoo

    ()
    (Associate Professor, Institute of Economic Growth, New Delhi, India)

Registered author(s):

    Abstract

    Bhutan is a small landlocked country in South Asia, located in the eastern Himalayas, and bordered by India and China. With a population of about 687,000, the country has a small economy that is also fragile. Nevertheless, its banking system plays an essential role in the growth and development of the country. This paper analyses the financial performance, the development and growth of bank and non-bank financial institutions of Bhutan for the period 1999-2008 using both traditional and data envelopment analysis (DEA). The DEA analysis shows that the country’s financial institutions are efficient, with the Bhutan National Bank being the most efficient. Overall, the paper finds that the return on equity (ROE) of the financial institutions in Bhutan are comparable to that of international banks and the development of the financial sector in Bhutan has contributed to the growth of the Bhutanese economy.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.unescap.org/sites/default/files/chap-4-DilBahadurRahut.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its journal Asia-Pacific Development Journal.

    Volume (Year): 19 (2012)
    Issue (Month): 1 (June)
    Pages: 97-138

    as in new window
    Handle: RePEc:unt:jnapdj:v:19:y:2012:i:1:p:97-138

    Contact details of provider:
    Postal: The United Nations Building, Rajadamnern Nok Avenue, Bangkok 10200
    Phone: (66-2) 288-1234
    Fax: (66-2) 288-1000
    Email:
    Web page: http://www.unescap.org/
    More information through EDIRC

    Related research

    Keywords: Financial institution; performance; loan; deposit; net income; Bhutan;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Avkiran, Necmi Kemal, 1999. "The evidence on efficiency gains: The role of mergers and the benefits to the public," Journal of Banking & Finance, Elsevier, vol. 23(7), pages 991-1013, July.
    2. Barro, Robert J, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 407-43, May.
    3. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
    4. Sturm, Jan-Egbert & Williams, Barry, 2004. "Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience," Journal of Banking & Finance, Elsevier, vol. 28(7), pages 1775-1799, July.
    5. Igor Jemric & Boris Vujcic, 2002. "Efficiency of Banks in Croatia: A DEA Approach*," Comparative Economic Studies, Palgrave Macmillan, vol. 44(2-3), pages 169-193, September.
    6. Havrylchyk, Olena, 2006. "Efficiency of the Polish banking industry: Foreign versus domestic banks," Journal of Banking & Finance, Elsevier, vol. 30(7), pages 1975-1996, July.
    7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    8. Jeremy Greenwood & Boyan Jovanovic, 1989. "Financial Development, Growth, and the Distribution of Income," NBER Working Papers 3189, National Bureau of Economic Research, Inc.
    9. Allen N. Berger & David B. Humphrey, 1997. "Efficiency of financial institutions: international survey and directions for future research," Finance and Economics Discussion Series 1997-11, Board of Governors of the Federal Reserve System (U.S.).
    10. Roubini, N. & Sala-I-Martin, X., 1991. "Financial development , the Trade Regime and Economic Growth," Papers 646, Yale - Economic Growth Center.
    11. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:unt:jnapdj:v:19:y:2012:i:1:p:97-138. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Macroeconomic Policy and Development Division, ESCAP).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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