scholarly journals A Comprehensive Analysis of the Effects of Capital Regulation and Heterogeneity on Bank Efficiency

2021 ◽  
Vol 4 (5) ◽  
pp. 111-116
Author(s):  
Jingwen Xu
Keyword(s):  
Cost Efficiency ◽  
Commercial Banks ◽  
Comprehensive Analysis ◽  
Capital Regulation ◽  
Profit Efficiency ◽  
Bank Efficiency ◽  
Different Types ◽  
Heterogeneity Analysis ◽  
The Cost ◽  
The Impact

This article analyzes the impact of capital regulation on bank efficiency using panel data from 165 commercial banks in China from 2013 to 2019. The results indicate that cost efficiency changes slightly and profit efficiency fluctuates greatly. Under the pressure of capital regulation, the profit efficiency of commercial banks with sufficient capital improves, while profit efficiency of banks with insufficient capital decreases slightly, and the cost efficiency of all commercial banks increases. Based on the heterogeneity analysis of banks, it is found that the cost efficiency and profit efficiency of different types of commercial banks differ significantly in response to capital regulation.

scholarly journals Impact of Specialization, Ownership Structure, and Size on Cost and Profit Efficiency of US Commercial and Savings Banks

2021 ◽  
pp. 81-110
Author(s):  
Asif Nawaz ◽  
Alper Kara
Keyword(s):  
Ownership Structure ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Stochastic Frontier ◽  
Foreign Banks ◽  
Profit Efficiency ◽  
Savings Banks ◽  
The Cost ◽  
The Impact

Using an unbalanced panel dataset of 5,265 observations from 454 US banks including 394 commercial and 60 savings banks, and Battese and Coelli (1995) Stochastic Frontier model, this study has determined the recent level of cost and profit efficiency estimates of these banks and analysed the impact of specialization, ownership structure, and size on the cost and profit efficiency. The results reveal that the cost efficiency of US commercial and savings banks is statistically higher than the profit efficiency with a score of 92.1% and 63.59% respectively; the global financial crisis did not affect cost efficiency much, but it had a shattering effect on the profit efficiency; the savings banks are more cost efficient than the commercial banks and commercial banks are more profit efficient than savings banks; there is no significant differences between the cost and profit efficiencies of privately and publicly owned banks; foreign banks are less cost and profit efficient compare to their domestic counterparts; and finally, the small banks enjoy higher cost and profit efficiency than their large, medium, and very large counterparts. The other determinants of cost and profit efficiency were found to be expectedly affecting the cost and profit efficiency of US banks. JEL classification numbers: C33, C67, D22, D24, G01, G21, G32. Keywords: Cost Efficiency, Profit Efficiency, US Commercial and Savings Banks, Bank Specialization, Ownership Structure, Bank Size.

scholarly journals The Effects of Alliance Strategies on the Cost Efficiency of Saudi Commercial Banks

2019 ◽  
Vol 9 (1) ◽  
pp. 84
Author(s):  
Hassan K. Almahdi
Keyword(s):  
Strategic Alliances ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Research Problem ◽  
Ordinary Least Squares ◽  
Regression Equations ◽  
The Public ◽  
The Cost ◽  
The Impact

The Objective of this study is to determine the influence of strategic alliances on the cost efficiency of Saudi banks. For this, we first develop a theoretical framework paving the way for an empirical study that refers to a sample of 09 Saudi banks adopted to verify this relationship. It is therefore, necessary to list the interests of strategic alliances in the banking sector and to question the role of public and foreign as wellas public and private alliance strategies in improving the cost efficiency of Saudi commercial banks.A quantitative approach has been adopted to explore and understand the research problem. We begin by regressing the ordinary least squares efficiency on a series of explanatory variables. The conceptual research model is tested by two different regression equations that will be estimated simultaneously. The first regression, aims to test the impact of the public-foreign alliance on the efficiency of the banks in our sample. As for the second regression, it is carried out to test the impact of the public-private alliance on the latter.The results of this study prove that the creation of an alliance agreement allows Saudi commercial banks to improve their efficiency and constitute for them an opportunity besides an interesting strategic option. Forthermore, public-private and public-foreign alliances are strategies that can improve the efficiency of public banks, increase their competitiveness and reduce their fragility.

scholarly journals Determinants of Bank Efficiency: Evidence from Czech Banking Sector

2015 ◽  
Vol 63 (3) ◽  
pp. 1005-1011
Author(s):  
Rostislav Staněk
Keyword(s):  
Commercial Bank ◽  
Cost Efficiency ◽  
Best Practice ◽  
Banking Sector ◽  
Efficiency Frontier ◽  
Profit Efficiency ◽  
Bank Efficiency ◽  
The Impact

The paper identifies bank-specific determinants of Czech commercial bank efficiency during the period 2000–2012. The paper employs a panel version of a stochastic efficiency frontier model with time variant efficiency to identify the impact of bank size and the structure of bank’s portfolio on the bank’s cost and profit efficiency. The results of the estimation show that bank size has no impact on cost efficiency but it negatively influences the bank’s ability to generate revenue. Cost efficiency increases with deposit-to-assets ratio and profit efficiency increases with loans-to-assets ratio. During the examined period average bank lost one fourth of its profit compared to best-practice bank.

The Impact of Out-of-State Entry on the Cost Efficiency of Local Commercial Banks

1998 ◽  
Vol 50 (2) ◽  
pp. 191-203 ◽  
Author(s):  
Robert DeYoung ◽  
Iftekhar Hasan ◽  
Bruce Kirchhoff
Keyword(s):  
Cost Efficiency ◽  
Commercial Banks ◽  
State Entry ◽  
The Cost ◽  
The Impact

scholarly journals Competition and efficiency among Vietnam's commercial banks

2017 ◽  
Vol 24 (01) ◽  
pp. 104-118
Author(s):  
Thom Phan Thi ◽  
Thuy Than Thi Thu
Keyword(s):  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking System ◽  
Commercial Banking ◽  
Bank Competition ◽  
Profit Efficiency ◽  
Two Factors ◽  
Negative Effect ◽  
Testing Techniques ◽  
The Impact

This article investigates the impact of bank competition on cost and profit efficiency in the Vietnam’s commercial banking system dur-ing 2005–2014. Based on different testing techniques, our results agree with the findings of Turk-Ariss (2010) that bank competition has a negative effect on profit efficiency and those of Pruteanu-Podpiera et al. (2008) and Maudos and de Guevara (2007) that bank competition is negatively related to cost efficiency. We also find that inflation and lag of competition are the two factors affect-ing the competition among these banks.

Comprehensive Effects of Short-Term Rental Platforms Across Hotel Types in U.S. and International Destinations

2021 ◽  
pp. 193896552110335
Author(s):  
John W. O’Neill ◽  
Jihwan Yeon
Keyword(s):  
Service Providers ◽  
Comprehensive Analysis ◽  
Competitive Market ◽  
Substitution Effects ◽  
Short Term ◽  
Hotel Performance ◽  
The World ◽  
Different Types ◽  
Location Type ◽  
The Impact

In recent years, short-term rental platforms in the lodging sector, including Airbnb, VRBO, and HomeAway, have received extensive attention and emerged as potentially alternative suppliers of services traditionally provided by established commercial accommodation providers, that is, hotels. Short-term rentals have dramatically increased the available supply of rooms for visitors to multiple international destinations, potentially siphoning demand away from hotels to short-term rental businesses. In a competitive market, an increase in supply with constant demand would negatively influence incumbent service providers. In this article, we examine the substitution effects of short-term rental supply on hotel performance in different cities around the world. Specifically, we comprehensively investigate the substitution effects of short-term rental supply on hotel performance based on hotel class, location type, and region. Furthermore, we segment the short-term rental supply based on its types of accommodations, that is, shared rooms, private rooms, and entire homes, and both examine and quantify the differential effects of these types of short-term rentals on different types of hotels. This study offers a comprehensive analysis regarding the impact of multiple short-term rental platforms on hotel performance and offers both conceptual and practical insights regarding the nature and extent of the effects that were identified.

Evaluating the effect of climate variation on the cost efficiency of a crop permit policy in Southern Sweden

2013 ◽  
Vol 4 (2) ◽  
pp. 110-117
Author(s):  
Dennis Collentine ◽  
Holger Johnsson
Keyword(s):  
Cost Efficiency ◽  
Agricultural Sector ◽  
Policy Design ◽  
Correlation Coefficients ◽  
Nitrogen Loads ◽  
Weather Variation ◽  
The Baltic ◽  
The Individual ◽  
The Cost ◽  
The Impact

Current international agreements call for a significant reduction of nitrogen loads to the Baltic Sea. New measures to reduce nitrogen loads from the agricultural sector and an increased focus on cost efficiency will be needed to meet reduction targets. For policy design and evaluation it is important to understand the impact of weather on the efficiency of abatement measures. One new proposed policy is the use of crop permits based on weather normalized average leaching. This paper describes the use of the Spearman method to determine the efficiency of this policy with annual weather variation. The conclusion is that the values of the Spearman correlation coefficients in the study indicate that using average leaching for the individual crops on specific soil types for calculating crop permit requirements is an efficient policy. The Spearman method is demonstrated to be a simple useful tool for evaluating the impact of weather and is recommended for use in new studies.

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.

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