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The Productive Efficiency Of Singapore Banks: An Application And Extension Of The Barret Al.(1999) Approach

Author

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  • WAI HO LEONG

    (Economics Division, Ministry of Trade and Industry, 100 High Street, Singapore 179434, Republic of Singapore)

  • BRIAN DOLLERY

    (International Graduate School of the Social Sciences, Yokohama National University, Japan;
    School of Economics, University of New England, Armidale NSW 2351, Australia)

Abstract

While a voluminous literature exists on the measurement of financial institution efficiency, little work has been directed at investigating the properties of data envelopment analysis (DEA) scores by examining the relationships between these scores and traditional measures of bank performance. Following the seminal work of Barr, Killgo, Siems and Zimmel (1999), this paper employs data on Singapore financial institutions for the period 1993 to 1999 to develop efficiency scores for Singapore banks. It then examines the manner in which derived DEA efficiency scores interact with traditional measures of profitability, size, risk and soundness.

Suggested Citation

  • Wai Ho Leong & Brian Dollery, 2004. "The Productive Efficiency Of Singapore Banks: An Application And Extension Of The Barret Al.(1999) Approach," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 49(02), pages 273-290.
    • Handle: RePEc:wsi:serxxx:v:49:y:2004:i:02:n:s0217590804000925
    DOI: 10.1142/S0217590804000925
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    References listed on IDEAS

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    1. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
    2. Bauer, Paul W. & Berger, Allen N. & Ferrier, Gary D. & Humphrey, David B., 1998. "Consistency Conditions for Regulatory Analysis of Financial Institutions: A Comparison of Frontier Efficiency Methods," Journal of Economics and Business, Elsevier, vol. 50(2), pages 85-114, March.
    3. Richard S. Barr & Kory A. Killgo & Thomas F. Siems & Sheri Zimmel, 1999. "Evaluating the productive efficiency and performance of U.S. commercial banks," Financial Industry Studies Working Paper 99-3, Federal Reserve Bank of Dallas.
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    Cited by:

    1. Boon L. Lee & Andrew C. Worthington & Wai Ho Leong, 2010. "Malmquist Indices Of Pre- And Post-Deregulation Productivity, Efficiency And Technological Change In The Singaporean Banking Sector," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(04), pages 599-618.

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