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 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.

Investigating cost efficiency in the branch network of a Greek bank: an empirical study

2008 ◽  
Vol 34 (3) ◽  
pp. 160-171 ◽  
Author(s):  
Athanasios G. Noulas ◽  
Niki Glaveli ◽  
Ioannis Kiriakopoulos
Keyword(s):  
Regression Analysis ◽  
Commercial Bank ◽  
Cost Efficiency ◽  
Comparative Evaluation ◽  
Design Methodology ◽  
Future Research ◽  
Data Envelopment ◽  
Content Type ◽  
Dea Method ◽  
The Cost

PurposeThe purpose of this study is to examine the cost efficiency of 58 branches of a major Greek commercial bank, in six major Greek cities, for the years 2000 and 2001.Design/methodology/approachThe efficiency is measured through the data envelopment analysis (DEA) method. Using regression analysis, the effect of size on cost efficiency is also examined.FindingsThe results indicate that there is a room for substantial efficiency improvements. The average inefficiency is about 30 per cent. It has also been observed that rural branches tend, on average, to be more efficient than urban branches.Research limitations/implicationsA direction of future research would be to extend the analysis of determinants of bank branch efficiency in order to investigate the role that the region and the characteristics of the branch play in relation to efficiency.Originality/valueThe paper provides a comparative evaluation of the efficiency of 58 branches of a major Greek commercial bank using the DEA method.

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).  

scholarly journals Analisis Perbandingan Efisiensi Bank Umum Konvensional dan Bank Umum Syariah di Indonesia

Akuntabilitas ◽  
2019 ◽  
Vol 12 (2) ◽  
pp. 191-200
Author(s):  
Azizah Kartika Rahmawati ◽  
S. R. Kartika Sari ◽  
Herry Hermawan
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Efficiency Measurement ◽  
Data Envelopment ◽  
Purposive Sampling ◽  
Dea Method

The purpose of this study was to determine the level of efficiency between conventional commercial banks and Islamic commercial banks. The sampling technique used in this study was purposive sampling by taking state-owned banks and Islamic commercial banks with the highest assets. Efficiency measurement in this study uses the Data Envelopment Analysis (DEA) method. The results of this study indicate that there are differences in efficiency between conventional commercial banks and Islamic commercial banks. Overall, each bank has an efficiency level of 93.67% (conventional commercial banks) and 99.99% (Islamic commercial banks). These results indicate that Islamic commercial banks are more efficient than conventional commercial banks.

scholarly journals Efficiency of commercial banks operating in Federation of Bosnia and Herzegovina using DEA method

2019 ◽  
Vol 1 (2) ◽  
pp. 106-111
Author(s):  
Admel Husejinović
Keyword(s):  
Data Envelopment Analysis ◽  
Bosnia And Herzegovina ◽  
Commercial Banks ◽  
Relative Efficiency ◽  
Efficiency Measurement ◽  
Data Envelopment ◽  
Significant Difference ◽  
Dea Method ◽  
Small Banks

Main objective of this research is to measure an efficiency of commercial banks operating in Federation of Bosnia and Herzegovina in period 2016-2017. An analysis is conducted over 12 banks that had positive overall profit lost at the end of 2016 and 2017 years published by Banking Agency of Federation of Bosnia and Herzegovina. Data Envelopment Analysis (DEA) method with two input and three output parameters is used for efficiency measurement. Each bank’s efficiency is presented for 2016 and 2017 years. For observed period, large banks showed more efficient than small banks. Based on the results shown in this research and features used in this model there is significant difference in relative efficiency of top two banks and rest of 10 banks.

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 Evaluating the Efficiency of Commercial Banks Using the DEA Method

2020 ◽  
Vol 11 (514) ◽  
pp. 192-197
Author(s):  
I. S. Blahun ◽  
Keyword(s):  
Commercial Banks ◽  
Weight Ratio ◽  
Parametric Modeling ◽  
Data Envelopment ◽  
All Solutions ◽  
Banking Institutions ◽  
Dea Method ◽  
High Level ◽  
The Cost

The article examines the application of the DEA (Data Envelopment Analysis) method in assessing the efficiency of commercial banks. This approach does not require knowledge of the efficiency function form. Using empirical input values and results of the financial and banking institutions, we are looking for a weight ratio to maximize efficiency. The article is aimed at evaluating the quality of management of commercial banks using the DEA model. As the methodology was chosen the DEA-modeling, because this method eliminates the problem of heteroscedacticity, which occurs during the parametric modeling. In the methodology of the analysis of the environment of the banks’ operation, commercial bank is considered as an economic unit with specific costs, which, as a result of the implemented activities, are used to generate concrete results. The article develops the principle of extracting information from observations. Thus, compared to the parametric approach dealing with the data averaging within a single regression model, the DEA method allows building up a Pareto-optimal-limit of all solutions, taking into account each individual observation. When analyzing the activities of commercial banks, their assets and the number of employees were selected for research taking into account resources, respectively. On the other hand, the result was the achieved value of deposits, the cost of loans, the number of clients of the bank and the provision of this bank, determined by the solvency coefficient. It is determined that the greatest impact on the results of the research have the size of the received deposits and loans of commercial banks. Measuring the efficiency in this article lies in finding a minimum value of the efficiency ratio, which reduces inputs, but so that the level of the source data remains at the same position. Upon the basis of the research, it can be stated that human resources and assets mostly influence the size of deposits and loans and have a high level of efficiency. Therefore, competition between financial institutions for clients is intensifying.

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