IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/34882.html
   My bibliography  Save this paper

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

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/34882/1/MPRA_paper_34882.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    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)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sandrine Kablan & Ouidad Yousfi, 2015. "Performance of Islamic Banks across the World: An Empirical Analysis over the Period 2001-2008," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(1), pages 27-46.
    2. Brissimis, Sophocles N. & Delis, Manthos D. & Tsionas, Efthymios G., 2010. "Technical and allocative efficiency in European banking," European Journal of Operational Research, Elsevier, vol. 204(1), pages 153-163, July.
    3. Mamatzakis, Emmanuel & Staikouras, Christos & Koutsomanoli-Filippaki, Anastasia, 2008. "Bank efficiency in the new European Union member states: Is there convergence?," International Review of Financial Analysis, Elsevier, vol. 17(5), pages 1156-1172, December.
    4. Abd elrhman Elzahi Saaid,Saiful Azhar Rosly,Mansor H. Ibrahim,and Naziruddin Abdullah, 2003. "The X-Efficiency Of The Sudanese Islamic Banks," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 11(2), pages 123-141, December.
    5. Kablan, S & Yousfi, O, 2011. "Efficiency of islamic and conventional banks in countries with islamic banking," MPRA Paper 32951, University Library of Munich, Germany.
    6. Daniel Gropper & Steven Caudill & T. Beard, 1999. "Estimating Multiproduct Cost Functions Over Time Using a Mixture of Normals," Journal of Productivity Analysis, Springer, vol. 11(3), pages 201-218, June.
    7. Catarina Figueira & Joseph Nellis & David Parker, 2009. "The effects of ownership on bank efficiency in Latin America," Applied Economics, Taylor & Francis Journals, vol. 41(18), pages 2353-2368.
    8. Zuzana Iršová & Tomáš Havránek, 2010. "Measuring Bank Efficiency: A Meta-Regression Analysis," Prague Economic Papers, Prague University of Economics and Business, vol. 2010(4), pages 307-328.
    9. Maryam Hasannasab & Dimitris Margaritis & Christos Staikouras, 2019. "The financial crisis and the shadow price of bank capital," Annals of Operations Research, Springer, vol. 282(1), pages 131-154, November.
    10. Cuesta, Rafael A. & Zofío, Jose L., 2003. "Graph Efficiency and Parametric Distance Function with an Application to Spanish Savings Banks," Efficiency Series Papers 2003/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    11. E. Mamatzakis, 2015. "Risk and efficiency in the Central and Eastern European banking industry under quantile analysis," Quantitative Finance, Taylor & Francis Journals, vol. 15(3), pages 553-567, March.
    12. Fadzlan Sufian & Junaina Muhamad & A.N. Bany-Ariffin & M.H. Yahya & Fakarudin Kamarudin, 2012. "Assessing the Effect of Mergers and Acquisitions on Revenue Efficiency: Evidence from Malaysian Banking Sector," Vision, , vol. 16(1), pages 1-11, March.
    13. A Mukherjee & P Nath & M Pal, 2003. "Resource, service quality and performance triad: a framework for measuring efficiency of banking services," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(7), pages 723-735, July.
    14. repec:ipg:wpaper:2014-448 is not listed on IDEAS
    15. Aude Hubrecht-Deville & Herve Leleu, 2008. "Impact of trade area environment on bank's comparative advantages," Applied Economics, Taylor & Francis Journals, vol. 40(17), pages 2209-2219.
    16. Huang, Tai-Hsin & Chung, Ming-Tai, 2017. "Do undesirables matter on the examination of banking efficiency using stochastic directional distance functions," The Quarterly Review of Economics and Finance, Elsevier, vol. 65(C), pages 194-211.
    17. Fadzlan Sufian & Fakarudin Kamarudin & Nor Halida Haziaton Mohd Noor, 2012. "Determinants of Revenue Efficiency in the Malaysian Islamic Banking Sector محددات كفاءة الإيرادات في القطاع المصرفي الماليزي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 25(2), pages 199-228, July.
    18. Hasan, Iftekhar & Lozano-Vivas, Ana, 2002. "Organizational Form and Expense Preference: Spanish Experience," Bulletin of Economic Research, Wiley Blackwell, vol. 54(2), pages 135-150, April.
    19. Manthos D. Delis & Sotirios Kokas & Steven Ongena, 2016. "Foreign Ownership and Market Power in Banking: Evidence from a World Sample," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(2-3), pages 449-483, March.
    20. Ahmad, Usman, 2011. "Financial Reforms and Banking Efficiency: Case of Pakistan," MPRA Paper 34220, University Library of Munich, Germany.
    21. Ho, Chun-Yu, 2012. "Market structure, welfare, and banking reform in China," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 291-313.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:34882. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.