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Measuring the impact of restructuring and country-specific factors on the efficiency of post-crisis East Asian banking systems: Integrating DEA with SFA

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  • Thoraneenitiyan, Nakhun
  • Avkiran, Necmi K.

Abstract

This paper investigates the relationship between post-crisis bank restructuring, country-specific conditions and bank efficiency in Asian countries from 1997 to 2001 using an approach that integrates data envelopment analysis and stochastic frontier analysis. We focus on restructuring measures related to bank ownership. The results indicate that although domestic mergers produce more efficient banks, overall, restructuring does not lead to more efficient banking systems. Banking system inefficiencies are mostly attributed to country-specific conditions, particularly, high interest rates, concentrated markets and economic development.

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  • Thoraneenitiyan, Nakhun & Avkiran, Necmi K., 2009. "Measuring the impact of restructuring and country-specific factors on the efficiency of post-crisis East Asian banking systems: Integrating DEA with SFA," Socio-Economic Planning Sciences, Elsevier, vol. 43(4), pages 240-252, December.
    • Handle: RePEc:eee:soceps:v:43:y:2009:i:4:p:240-252
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    3. Vaninsky, Alexander, 2010. "Prospective national and regional environmental performance: Boundary estimations using a combined data envelopment – stochastic frontier analysis approach," Energy, Elsevier, vol. 35(9), pages 3657-3665.
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    11. T. To D. & Т. То Д., 2016. "Реструктуризация банковской системы: пример Вьетнама // Restructuring the Banking System: the Case of Vietnam," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 4(4), pages 32-54.
    12. Maximilian J. B. Hall & Karligash Kenjegalieva & Richard Simper, 2010. "Accounting for environmental factors, bias and negative numbers in efficiency estimation: A bootstrapping application to the Hong Kong banking sector," Discussion Paper Series 2010_03, Department of Economics, Loughborough University, revised Feb 2010.
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