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Trends in New Zealand Bank Efficiency over Time

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  • Tripe, David

Abstract

This paper explores the extent of efficiency improvements achieved by New Zealand banks over the period 1996 to 2002, using data envelopment analysis (DEA), on a time-series, rather than cross-sectional basis. Evidence is found for improvements in bank efficiency through time, some of which can be attributed to falls in the general level of interest rates, although a further portion may be due to either management effort to improve bank efficiency or technical progress. Because some of the results obtained appear to be a consequence of the methodology, rather than necessarily being consistent with other interpretations of the data, the paper also provides insights into complications that can arise with use of DEA.

Suggested Citation

  • Tripe, David, 2003. "Trends in New Zealand Bank Efficiency over Time," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(1).
    • Handle: RePEc:eaa:aeinde:v:3:y:2003:i:3_3
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    References listed on IDEAS

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    1. Mester, Loretta J., 1996. "A study of bank efficiency taking into account risk-preferences," Journal of Banking & Finance, Elsevier, vol. 20(6), pages 1025-1045, July.
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    10. repec:bla:ecorec:v:72:y:1996:i:218:p:246-59 is not listed on IDEAS
    11. Necmi Avkiran, 2000. "Rising productivity of Australian trading banks under deregulation 1986–1995," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 24(2), pages 122-140, June.
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    Cited by:

    1. Avkiran, Necmi K., 2009. "Removing the impact of environment with units-invariant efficient frontier analysis: An illustrative case study with intertemporal panel data," Omega, Elsevier, vol. 37(3), pages 535-544, June.
    2. Ramiz ur Rehman & Junrui Zhang & Muhammad Akram Naseem & Muhammad Ishfaq Ahmed & Rizwan Ali, 2021. "Board independence and Chinese banking efficiency: a moderating role of ownership restructuring," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 517-536, September.
    3. Asma Mghaieth & Imen Khanchel El Mehdi, 2014. "The determinants of cost/profit efficiency of Islamic banks before, during and after the crisis of 2007," Working Papers 2014-107, Department of Research, Ipag Business School.
    4. Abayomi Oredegbe, 2021. "Cost Efficiency Determinants: Evidence from the Canadian Banking Industry," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(1), pages 1-86, July.

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    More about this item

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • G2 - Financial Economics - - Financial Institutions and Services

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