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Evaluating the efficiency of Latin American banks

Author

Listed:
  • Malindretos, John
  • Kasibhatla, Krishna
  • Rivera-Solis, Luis Eduardo

Abstract

Latin American banking sector has undergone tremendous changes over the years as a result of changes in regulation, globalization and developments in Telecommunications and Information Technology. A very important development has been financial liberalization where Latin America opened its doors to foreign banks. An important issue that needs to be addressed is whether the local commercial banks are efficient enough in their operations to be economically viable in a highly competitive environment. The objective of this study is to examine the factors behind bank profitability, following financial liberalization in five countries, Honduras, Mexico, Paraguay, Peru, and Venezuela, using 2004 financial data.

Suggested Citation

  • Malindretos, John & Kasibhatla, Krishna & Rivera-Solis, Luis Eduardo, 2008. "Evaluating the efficiency of Latin American banks," MPRA Paper 34882, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34882
    as

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    References listed on IDEAS

    as
    1. Christopher J. Green & Victor Murinde & Ivaylo Nikolov, 2004. "The Efficiency of Foreign and Domestic Banks in Central and Eastern Europe: Evidence on Economies of Scale and Scope," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 3(2), pages 175-205, August.
    2. Berger, Allen N. & Humphrey, David B., 1997. "Efficiency of financial institutions: International survey and directions for future research," European Journal of Operational Research, Elsevier, vol. 98(2), pages 175-212, April.
    3. English, M. & Grosskopf, S. & Hayes, K. & Yaisawarng, S., 1993. "Output allocative and technical efficiency of banks," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 349-366, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banking efficiency; financial liberalization; Latin American banking;
    All these keywords.

    JEL classification:

    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean

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