Journal ArticleDOI
X-efficiency in Australian banking: An empirical investigation
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In this paper, the authors empirically investigated the x-eAciency (technical and allocative) in Australian banks and found that the technical component was more important than the allocative component.Abstract:
This paper empirically investigates the x-eAciency (technical and allocative) in Australian banks. A non-parametric method of Data Envelopment Analysis (DEA) has been used to arrive at the eAciency scores. Banks in this sample were found to have low levels of overall eAciency compared with the banks in the European countries and in the US. The results indicate that, as a source of overall ineAciency, the technical component was more important than the allocative component. Thus, the ineAciency in Australian banks can be attributed to wasting of inputs (technical ineAciency) rather than choosing the incorrect input combinations (allocative ineAciency). Domestic banks were found to be more eAcient than foreign owned banks. The study has important implications such as guiding the government policy regarding deregulation and mergers. Since the study pinpoints the sources of ineAciency, it would also help banks with strategic planning. ” 2001 Elsevier Science B.V. All rights reserved.read more
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Factors influencing the profitability of domestic and foreign commercial banks in the European Union
TL;DR: In this paper, the authors examined how bank's specific characteristics and the overall banking environment affect the profitability of commercial domestic and foreign banks operating in the 15 EU countries over the period 1995-2001.
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Efficiency of banks in a developing economy: The case of India
TL;DR: The study shows that the mean efficiency score of Indian banks compares well with the worldmean efficiency score and the efficiency of private sector commercial banks as a group is, paradoxically lower than that of public sector banks and foreign banks in India.
Journal ArticleDOI
Efficiency of the Polish Banking Industry: Foreign Versus Domestic Banks
TL;DR: In this paper, the authors investigated the efficiency of the Polish banking industry between 1997-2001 using data envelope analysis, which allowed them to distinguish between cost, allocative, technical, pure technical, and scale efficiency.
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Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience
Jan-Egbert Sturm,Barry Williams +1 more
TL;DR: In this article, the impact of foreign bank entry on banking efficiency in Australia during the post-deregulation period 1988-2001 was investigated using Data Envelopment Analysis, Malmquist Indices and stochastic frontier analysis.
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Consolidation and efficiency in the financial sector: A review of the international evidence ☆
TL;DR: This article found that consolidation in the financial sector is beneficial up to a relatively small size, but there is little evidence that mergers yield economies of scope or gains in managerial efficiency, and they also found that the benefits of mergers depend on the country, industry and time period analyzed.
References
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Measuring the efficiency of decision making units
TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
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Efficiency of financial institutions: International survey and directions for future research
TL;DR: The authors survey 130 studies that apply frontier efficiency analysis to financial institutions in 21 countries and find that the various efficiency methods do not necessarily yield consistent results and suggest some ways that these methods might be improved to bring about findings that are more consistent, accurate, and useful.
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Recent developments in dea : the mathematical programming approach to frontier analysis
TL;DR: In this paper, the authors discuss the mathematical programming approach to frontier estimation known as Data Envelopment Analysis (DEA) and examine the effect of model orientation on the efficient frontier.