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Productivity Analysis of Commercial Banks of Bangladesh: A Malmquist Productivity Index Approach

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  • Nusrat Jahan

    (CIU Business School, Chittagong Independent University, Bangladesh.)

Abstract

This study evaluated the productivity performance of 29 listed commercial banks by employing Malmquist Productivity Index (MPI) of Total Factor Productivity (TFP) over the period of 2011-2015. Evaluation of productivity performance reveals that Islamic banks, on an average, had relatively higher five year cumulative average TFP change index compared to that of Conventional banks. In addition, Islamic banks reported less variability in its TFP change index compared to Conventional banks. Productivity change index of Islamic bank indicate that it's failing to sustain the progress made in some years whereas Conventional banks though reported regress during some years but the trend remained consistent. Evaluation of productivity analysis indicates that progress made in TFP was mainly attributed to the increase in efficiency change rather than technological progress. The decomposition of the efficiency change index revealed that the source of the increment was mainly attributed to scale effect.

Suggested Citation

  • Nusrat Jahan, 2019. "Productivity Analysis of Commercial Banks of Bangladesh: A Malmquist Productivity Index Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 108-115.
    • Handle: RePEc:eco:journ1:2019-01-13
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    References listed on IDEAS

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    More about this item

    Keywords

    Malmquist Productivity Index; Total Factor Productivity; Data Envelopment Analysis;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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