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Rising productivity of Australian trading banks under deregulation 1986–1995

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  • Necmi Avkiran

Abstract

Productivity of four major trading banks and six regional banks is investigated using Malmquist productivity indices in the deregulated period 1986–1995. The principal findings indicate an overall rise in total productivity driven more by technological progress than technical efficiency. Performance of major trading banks on technical efficiency is similar to that of regional banks but higher on technological progress. Distinguishing between improvement in technical efficiency and technological change is significant for policy formulation. Technological innovation can be construed as a sign of dynamic efficiency where banks take advantage of new cost-effective technologies and pursue product and market development. Copyright Springer 2000

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  • 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.
    • Handle: RePEc:spr:jecfin:v:24:y:2000:i:2:p:122-140
    DOI: 10.1007/BF02752708
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    References listed on IDEAS

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