Efficiency and Productivity Growth of Domestic and Foreign Commercial Banks in Malaysia
AbstractThis study examines the technical efficiency and productivity of domestic and foreign commercial banks in Malaysia 1994-2000. We find that foreign banks have a higher efficiency level than domestic banks, and that efficient banks are characterised by size but not profitability or loan quality. The main source of productivity growth is technical change rather than improvement in efficiency. The productivity of domestic banks is more susceptible to macroeconomic shocks than foreign banks but over the medium term foreign banks are only marginally superior to domestic banks.
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Bibliographic InfoPaper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2006/2.
Length: 24 pages
Date of creation: Jan 2006
Date of revision:
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domestic and foreign banks; technical efficiency; Malmquist productivity index;
Find related papers by JEL classification:
- D2 - Microeconomics - - Production and Organizations
- G2 - Financial Economics - - Financial Institutions and Services
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
- NEP-EFF-2006-01-24 (Efficiency & Productivity)
- NEP-FIN-2006-01-24 (Finance)
- NEP-SEA-2006-01-24 (South East Asia)
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- Stijn Claessens & Neeltje van Horen, 2009.
"Being a Foreigner among Domestic Banks: Asset or Liability?,"
DNB Working Papers, Netherlands Central Bank, Research Department
224, Netherlands Central Bank, Research Department.
- Claessens, Stijn & van Horen, Neeltje, 2012. "Being a foreigner among domestic banks: Asset or liability?," Journal of Banking & Finance, Elsevier, Elsevier, vol. 36(5), pages 1276-1290.
- Claessens, Stijn & van Horen, Neeltje, 2009. "Being a foreigner among domestic banks: Asset or liability?," MPRA Paper 13467, University Library of Munich, Germany.
- Ab-Rahim, Rossazana & Kadri, Norlina & Ismail, Farhana, 2013. "Efficiency performance of Malaysian Islamic banks," MPRA Paper 46238, University Library of Munich, Germany.
- Neeltje van Horen & Stijn Claessens, 2009. "Being a Foreigner Among Domestic Banks," IMF Working Papers 09/273, International Monetary Fund.
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