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Banks' Types of Ownership and Efficiency: Evidence from Indonesia

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We examine the relationship between banks' types of ownership and banks' efficiency using Greene's "true" panel data stochastic frontier model. We find that, even after taking unobserved heterogeneity more properly into account, state-owned banks in Indonesia are the least efficient banks and joint-venture banks are the most efficient ones.

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Paper provided by Nottingham University Business School Malaysia Campus in its series NUBS Malaysia Campus Research Paper Series with number 2009-04.

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Date of creation: Apr 2009
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Handle: RePEc:nom:nubsmc:2009-04

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Keywords: Banking; Ownership types; Efficiency; Stochastic frontier;

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