scholarly journals An Empirical Study of Bank Efficiency in South Africa Using the Standard and Alternative Approaches to Data Envelopment Analysis (DEA)

2014 ◽  
Vol 6 (4) ◽  
pp. 310-317 ◽  
Author(s):  
Coert Erasmus

The paper investigates the efficiency of the major banks of South Africa using the standard and alternative approaches to Data Envelopment Analysis (DEA). The standard DEA approach measures efficiency utilising linear averages of outputs and inputs while the alternative DEA approach utilises nonlinear averages. Individual bank efficiency scores are estimated over the period 2006 to 2012, a period that allows analysis of the efficiency of the banks during the global financial crisis of 2008 to 2009. Under both approaches the majority of the major South African banks were observed to be DEA efficient, with the alternative approach improving the efficiency scores of those banks that were DEA inefficient under the standard approach. The global financial crisis did not affect the efficiency of the majority of the banks. Since the banks were DEA efficient prior the crisis, it could be argued that their efficiency was one of the contributory factors for their resilience during the global financial crisis.

2013 ◽  
Vol 5 (11) ◽  
pp. 798-804 ◽  
Author(s):  
Izah Mohd Tahir ◽  
Sudin Haron .

The purpose of this paper is to analyse the efficiency of Islamic banks in Malaysia using both the standard approach and the alternative approach to Data Envelopment Analysis (DEA). The standard approach relies on linear averages of outputs and inputs to measure efficiency whereas the alternative approach uses nonlinear averages. Both approaches are tested on 14 Islamic banks in Malaysia for the three-year period, 2008 to 2010. Our overall results for the three years suggest that, the inefficiency level among these banks using the standard approach (SDEA) is much higher than using the alternative approach (ADEA). Implications and future research are also discussed.


Author(s):  
Francisco Vargas Serrano ◽  
Luis Rentería Guerrero ◽  
Gang Cheng ◽  
Panagiotis D. Zervopoulos ◽  
Arnulfo Castellanos Moreno

This chapter presents an attempt to compare the productivity of the Mexican banking sector in two different periods: the 2007-2011 period of global financial crisis and the 2003-2006 stage, which can be regarded as a relatively stable period. The purpose of this study is to disclose whether the global financial crisis affected Mexican banking productivity. Three Data Envelopment Models (DEA) are tested in order to assess whether there is a significant difference between the productivity patterns of Mexican banks before and after the financial crisis. Such models are the radial Malmquist Index, the non-radial and slacks-based model, and non-radial and non-oriented. Essentially, no significant difference of productivity indicators for both foreign and domestic banks was found. Likewise, no significant difference between the pre- and post-crisis periods was perceived, as far as productivity indicators are concerned. Therefore, the global financial crisis was effectless in banking operation.


2011 ◽  
Vol 4 (2) ◽  
pp. 367-390
Author(s):  
Thea L. Voogt

Very little country-specific information is available on the effects of the global financial crisis on developing countries. This article focuses on the effects of the global financial crisis on the chief financial officers (CFOs) of the 40 largest listed companies on the JSE Ltd and achieves four objectives. Firstly, it provides perspectives on the effects of the global financial crisis on South Africa. Secondly, it details a literature review on the effects of the crisis on CFOs globally. Thereafter, a model is presented of the roles and responsibilities of CFOs, which, together with the literature review and previous similar research, was used as the basis for a questionnaire. Lastly, this article reports on the responses to the questionnaire. The research revealed eight significant findings and a number of specific areas for research. Among these significant findings were that respondents’ perceptions of an increase in importance in some of their roles did not correspond to the time they spend and expect to spend on responsibilities related these roles. In addition, respondents expected to spend even less time on IT and sustainability. This article provides valuable insights into the extent of the effects of the global financial crisis on CFOs.


Author(s):  
Philani Mthembu

AbstractAs South Africa looks to consolidate its role as a development partner, it remains an open question whether it can maintain a strong presence in Africa while facing significant challenges at home. With the economy struggling to grow and the government increasingly cutting back on expenditure, one has to wonder whether these cuts are translating into a reduction of its role as a development partner in Africa. With the eagerly awaited South African Development Partnership Agency in mind, this chapter examines data from the African Renaissance and International Cooperation Fund (ARF) between 2003 and 2015. It shows empirically that, despite increasing allocations and disbursements in the years following its inception, the global financial crisis and domestic challenges have taken their toll on the ARF’s activities.


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