scholarly journals Financial Efficiency Evaluation of Indian Scheduled Commercial Banks

2019 ◽  
Vol 8 (1) ◽  
pp. 51-64
Author(s):  
Aparna Bhatia ◽  
Megha Mahendru
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Data Envelopment ◽  
Efficiency Evaluation ◽  
Financial Efficiency ◽  
Profit Efficiency ◽  
Nonparametric Approach ◽  
Cost Inefficiency ◽  
High Level

The main objective of the article is to analyze and evaluate cost, revenue and profit efficiency scores of Indian scheduled commercial banks (SCBs) in India during 1991–1992 till 2012–2013 by the application of data envelopment analysis (DEA)—a nonparametric approach. The results show that Indian SCBs have profit, revenue and cost efficiency of less than 1 during both the reformatory as well as post-reformatory era depicting that banks are not able to maximize their revenues and minimize their costs simultaneously in order to enhance their net effect. During reformatory and post-reformatory era, SCBs are more efficient in generating revenues and profits rather than in using their resources efficiently reflecting a high level of cost inefficiency. Overall, the results depict that Indian SCBs exhibit higher efficiency scores in reformatory era than in post-reformatory era.

scholarly journals Cost efficiency of the Czech and Slovak banking sectors: an application of the data envelopment analysis

2016 ◽  
Author(s):  
Iveta Palecková
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Cost Efficient ◽  
The Cost ◽  
Variable Returns To Scale

The aim of the paper is to estimate the cost efficiency of the Czech and Slovak commercial banks within the period 2010-2014. For empirical analysis the Data Envelopment Analysis input-oriented model with variable returns to scale is applied on the data of the commercial banks. The intermediation approach is adopted to define the inputs and outputs. The Czech commercial banks are more cost efficient than Slovak commercial banks. The development of average cost efficiency is similar in the Czech and Slovak banking industry. The most efficient Czech banks are Ceská sporitelna and Sberbank in the Czech banking sector, the most efficient Slovak bank is Privatbanka with 100% efficiency.

scholarly journals Bad Debt and Cost Efficiency in Vietnamese Commercial Banks

2015 ◽  
Vol 22 (1) ◽  
pp. 125-140
Author(s):  
Vinh Nguyen Thi Hong
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Direct Relationship ◽  
Data Envelopment ◽  
Dea Method ◽  
Two Stages ◽  
The Cost ◽  
The Relationship ◽  
Bad Debt

The paper aims at exploring the relationship between bad debt and cost efficiency in Vietnamese commercial banks in the years 2007 – 2013. The research includes two stages: (i) Measuring the cost efficiency of banks by non-parameter Data Envelopment Analysis (DEA) method suggested by Coelli (2005); and (ii) Applying the Tobit model to identify two-way effects of bad debt and bank cost efficiency. The results show that the cost efficiency in Vietnamese commercial banks is 52.6% and there exists a direct relationship between bad debt and cost efficiency.

scholarly journals Islamic Banks vs. Conventional Banks in Bangladesh: A Comparative Study Based on its Efficiency in Operation

2020 ◽  
Vol 4 (1) ◽  
pp. 29-37 ◽  
Author(s):  
Faisal Ahmad
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Progress ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Productivity Index ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Factor Productivity ◽  
Conventional Banks ◽  
Better Than

The main purpose of this study is to make a comparison between Islamic banks (IBs) and Conventional banks (CBs) in Bangladesh based on its efficiency in operation. The Data Envelopment Analysis (DEA) is employed under CRS and VRS approach, which allows for the decomposition of efficiency into technical, allocated and cost efficiency. The study also measures changes in productivity over the time as a result of technical progress by employing the Malmquist Total Factor Productivity Index. The results explain that the technical efficiency of IBs is better than that of CBs, but allocated and cost efficiency (CE) of IBs are higher than CBs. In Bangladesh there are 62 commercial banks included 8 Islamic Banks that are regulated by Bangladesh Bank (BB).  

Financial efficiency of commercial banks listed in Egyptian stock exchange using data envelopment analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Abdelrahman Kamel ◽  
Mohamed El-Sayed Mousa ◽  
Randa Mohamed Hamdy
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Financial Efficiency ◽  
Content Type ◽  
Egyptian Stock Exchange

PurposeThis study used data envelopment analysis (DEA) models to measure financial efficiency of twelve commercial banks listed in the Egyptian stock exchange (CBLSE), along with evaluating changes to the financial efficiency during the period 2017–2019.Design/methodology/approachThe study used BCC-I, cross-efficiency, super-efficiency models, and Malmquist productivity index (MPI) to assess financial efficiency of the examined banks. The available data from both inputs and outputs were analyzed using R. studio V.I.3. 1056 software.FindingsOut of twelve banks examined, only four banks were efficient under BCC-I model over different years of the study period; however, only one bank (CIB) appeared to be the most efficient compared to other peers in the study sample. Moreover, MPI results revealed decreased financial efficiency during the study period, due to the decreased technological innovation, except for HDB. Tobit regression results confirmed that total assets and total equity are significant factors impacted financial efficiency of CBLSE.Practical implicationsThis study sheds light on the importance of evaluating financial efficiency of CBLSE to all stakeholders, to pinpoint weaknesses in banks' performance, and for evaluating financial policies and investment decisions.Originality/valueSeveral studies sought to implement different models of DEA to assess banking performance in different regions of the world, but very few studies examined financial efficiency of banks. To the best of authors’ knowledge, this study is one of those few that addressed financial efficiency of banks in Egypt.

Nonparametric Approaches

2021 ◽  
pp. 191-208
Author(s):  
Elvira Silva ◽  
Spiro E. Stefanou ◽  
Alfons Oude Lansink
Keyword(s):  
Linear Programming ◽  
Data Envelopment Analysis ◽  
Panel Data ◽  
Programming Models ◽  
Data Envelopment ◽  
Nonparametric Approach ◽  
Measuring Efficiency ◽  
Cost Inefficiency ◽  
Outer Bound ◽  
Efficiency And Productivity

This chapter focuses on the nonparametric data envelopment analysis (DEA) framework of structural linear programming models underlying the estimation of efficiency. The nonparametric approach to measuring technical and cost inefficiency has been adopted in the examples in earlier chapters. Chapter 3 introduced the notions of inner- and outer-bound technologies. The inner-bound technology representation has dominated the nonparametric empirical applications in the literature on measuring efficiency and productivity. However, as this chapter shows, the outer-bound representation of the technology presents a viable alternative to measuring technical and cost efficiency as well. The chapter also develops an application to farm-level panel data.

scholarly journals Cost Efficiency Evaluation Based on a Data Envelopment Analysis Approach by Considering Undesirable Outputs on the Basis of the Semi-Disposability Assumption

2020 ◽  
Vol 25 (1) ◽  
pp. 4
Author(s):  
Mehdi Karami Khorramabadi ◽  
Majid Yarahmadi ◽  
Mojtaba Ghiyasi
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Power Plants ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Efficiency Evaluation ◽  
Undesirable Outputs ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

It is considerably important to calculate the cost efficiency in data envelopment analysis for the efficiency evaluation of decision-making units. The present paper develops the classical cost efficiency model in which all the input prices are constant and certain for each decision-making unit, considering undesirable outputs under the semi-disposability assumption. The proposed models are interval and uncertain under the constant returns to scale and also variable returns to scale assumptions, for the easy solution of which, their lower and upper bounds are obtained on the basis of the theorem presented in the text. In order to simulate the proposed models and show their scientific capabilities, additionally, 56 electricity producing thermal power plants in Iran were studied in 2015. Results of the present study show that under both assumptions of constant returns to scale and variable returns to scale, the highest cost efficiency bounds belonged to the combined and steam cycle power plants. Moreover, the average of lower and upper cost efficiency bounds of the power plants under study were 34% and 35%, respectively, in 2015, under the constant returns to scale assumption, and 52% and 54%, respectively, under the variable returns to scale assumption.

scholarly journals Financial Regulations, Profit Efficiency, and Financial Soundness: Empirical Evidence from Commercial Banks of Pakistan

2017 ◽  
Vol 56 (2) ◽  
pp. 85-103
Author(s):  
Shumaila Zeb ◽  
Abdul Sattar .
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Banks ◽  
Financial Stability ◽  
Jel Classification ◽  
Data Envelopment ◽  
Z Score ◽  
Profit Efficiency ◽  
Differential Effects ◽  
Financial Regulations ◽  
Financial Soundness

The purpose of this paper is threefold. First, it measures profit efficiency and financial stability of commercial banks of Pakistan. Second, it empirically estimates the effect of the already implemented financial regulations on the profit efficiency and financial stability of banks. Third, it examines the differential effect of financial regulations on profitability and financial soundness across bank size. To carry out the empirical analysis, a balanced bank-level panel data covering the period 2008-2014 is used. To gauge the profit efficiency of commercial banks, Data Envelopment Analysis (DEA) is utilised, while, to proxy the financial soundness, the Z-score is calculated for each bank. The panel regression approach is used to examine the effects of financial regulations on the profit efficiency and financial soundness of banks. We find that the financial regulations enforced by State Bank of Pakistan (SBP) have significant impacts on the profit efficiency and financial stability of banks. The results indicate that the non-performance loans to assets ratio (NPLL) and the reserve ratio (RR) impact positively, whereas, the liquidity ratio (LIQR) and the loans to deposits ratio (LODEPOSIT), significantly and negatively affect the profit efficiency of banks. However, only LR and RR are positively and significant related to the financial stability. The results also suggest that the financial regulations have significant differential effects on the profit efficiency and financial soundness of banks across bank size. JEL Classification: C23, E44, G21, G28 Keywords: Profit Efficiency, Financial Soundness, Financial Regulations, Data Envelopment Analysis, Z-Score, Differential Effects

Sign in / Sign up

Export Citation Format

Share Document