Productivity and Efficiency of Banking Sector in Nepal

2019 ◽  
Vol 3 (ii) ◽  
Author(s):  
Kishor Hakuduwal
Keyword(s):  
Panel Data ◽  
Human Resource ◽  
Banking Sector ◽  
Joint Venture ◽  
Stochastic Frontier ◽  
Stochastic Frontier Approach ◽  
Policy Makers ◽  
Systematic Random Sampling ◽  
Resource Cost ◽  
Input Variables

The paper aims to analyze the productivity and efficiency of banking sector in Nepal. Using systematic random sampling, 20 banks including both commercial and development are selected. The 180 observations of nine year’s panel data from FY 2006/07 to FY 2014/15 has been used. Stochastic Frontier Approach is used taking three input variables i.e. capital, deposit and human resource cost, and one output variable i.e. loans and advance of sampled banks for analysis. The study found that the productivity of human resource, deposit and capital is significant. The joint venture banks are the most efficient than private and Government owned banks. The commercial banks are more efficient than development banks. The study has important implications for the policy makers to take corrective actions for improving the productivity and efficiency of banking sector in Nepal. Keywords: Productivity, Efficiency, Stochastic Frontier approach, Panel data, Banking sector

scholarly journals PANEL STOCHASTIC FRONTIER ANALYSIS OF PROFITABILITY AND EFFICIENCY OF TURKISH BANKING SECTOR IN THE POST CRISIS ERA / TURKIJOS BANKŲ SEKTORIAUS VEIKLOS PELNINGUMO IR EFEKTYVUMO ANALIZĖ POKRIZINIU LAIKOTARPIU

2011 ◽  
Vol 12 (4) ◽  
pp. 629-654 ◽  
Author(s):  
Ahmet Faruk Aysan ◽  
Mustafa Mete Karakaya ◽  
Metin Uyanik
Keyword(s):  
Structural Changes ◽  
Banking Sector ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Foreign Banks ◽  
Efficiency Gain ◽  
Stochastic Frontier Approach ◽  
Banking Efficiency ◽  
Frontier Analysis ◽  
Efficiency Measures

This paper examines the efficiency and its relation to profitability in Turkish banking sector by employing Panel Stochastic Frontier Approach. In the post crises period, extensive structural changes have taken place and a great number of new developments have occurred, affecting the efficiency of banking sector. This is the first study that employs panel stochastic frontier approach for banking efficiency in Turkey. In this research, both cost and profit efficiency measures are estimated for the panel data consisting of 32 banks between 2002–2007. Results suggest that there is cost efficiency gain and convergence in the efficiency levels of banks. As another interesting result, foreign banks are less efficient and state banks are more efficient. This paper also analyzes the relation between efficiency and profitability and finds no robust relation between them. However, the bank size matters more for profitability. Santrauka Autoriai nagrinėja Turkijos bankų veiklą, t. y. jų pelningumą bei efektyvumą pokriziniu laikotarpiu. Šis laikotarpis buvo pasirinktas todėl, kad atsirado daug įvairių struktūrinių pokyčių, kurie turėjo įtakos bankininkystės sektoriaus efektyvumui. Tyrimui buvo pasirinkti 32 Turkijoje veikiantys bankai (jų veiklos rodikliai prieš ekonominę krizę ir po jos). Rezultatai rodo, kad Turkijoje veikiančių užsienio komercinių bankų veikla yra mažiau efektyvesnė nei valstybinių. Taip pat autoriai analizuoja bankų veiklos efektyvumo ir pelningumo santykį, tačiau, kaip rodo gauti rezultatai, stipraus ryšio tarp jų nėra.

scholarly journals Technical Efficiency of Independent Oil Palm Smallholder In Indonesia

2021 ◽  
pp. 59
Author(s):  
Firna Varina ◽  
Sri Hartoyo ◽  
Nunung Kusnadi ◽  
Amzul Rifin
Keyword(s):  
Technical Efficiency ◽  
Oil Palm ◽  
Technical Assistance ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Stochastic Frontier Approach ◽  
Funding Sources ◽  
Result Show ◽  
Input Variables ◽  
Farmer Education

This study assesses technical efficiency and possible sources of inefficiency of independent smallholder oil palm production in Indonesia with stochastic frontier approach.  The result show all the input variables is  positively affect the oil palm production and exhibit decreasing returns to scale .  The farmers have mean technical efficiency (TE) values 0.6541, however about 53 % farmers have TE above 0.70. Factors such as age of farmer, education, extension services, member of farmer group,  land ownership and funding sources have a positive and significant effect on technical efficiency. It is suggested that by improving factors such as input used, education level, technical assistance on farming practice and accessibility to credit facilities should be increase the productivity and technical efficiency of oil palm production.  The farmers who have plant over 30 years old, which the TE and productivity are the lowest values,  should be thinking about replanting

scholarly journals Government-linked banks’ performance in Jordan

2017 ◽  
Vol 14 (2) ◽  
pp. 44-50
Author(s):  
Mohammad Ahid Ghabayen ◽  
Ahmad Omar Hardan ◽  
Zaid Jaradat ◽  
Mohannad Alshbiel
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Banking Sector ◽  
Bank Performance ◽  
Government Ownership ◽  
Policy Makers ◽  
The Past ◽  
Significant Difference ◽  
The Government ◽  
The Relationship

The main objective of this study is to examine the relationship between government ownership and bank performance in Jordan. The banking sector has been widely ignored in the past corporate governance studies due to its strict system. Using a panel data from 2004 to 2013 (147 observations/years), the multiple regression analysis shows that increasing the percentage of shareholdings leads to higher profitability. Additional government-linked banks (GLBs) generally outperform their unlinked counterparts. However, their outperformance is contingent to the significance percentage of the shareholdings. On other words, if the government shareholdings are not significant (less than 10%) the government ownership does not make a significant difference in the performance. Using panel data provide us with a significant roles played by the period of the study. The banks show increasing in their performance through the period of this study. However, the size and the age of the banks are found to be insignificant while the leveraged banks significantly underperform their counterparts. The results of this study might be of interest of potential investors, policy makers, governance agencies and information users.

scholarly journals STOCHASTIC PRODUCTION FRONTIER: FRAMEWORK AND DEVELOPMENT

2012 ◽  
Vol 5 (2) ◽  
pp. 88
Author(s):  
Suyanto Suyanto
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Theoretical Framework ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Stochastic Frontier Approach ◽  
Two Stage ◽  
Stochastic Production ◽  
The One

This paper explores the framework and development of stochastic frontier Approach (SFA). The original idea of the SFA and its theoretical framework is discussed to provide a basic foundation of the approach. The development of SFA with more flexible distribution assumptions follows the pioneering model. Experts alsodevelop the time-variant technical efficiency models, in order to allow variation between times for a production unit. The most recent development is the panel data SFA, which includes the two-stage and the one-stage procedures.

scholarly journals Banking Market Concentration and Bank Efficiency. Evidence from Southern, Eastern and Central Europe

2021 ◽  
Vol 16 (1) ◽  
pp. 38-52
Author(s):  
Sylwester Kozak ◽  
Agata Wierzbowska
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Stochastic Frontier ◽  
Market Concentration ◽  
Stochastic Frontier Approach ◽  
Bank Efficiency ◽  
Explanatory Variables ◽  
Eu Countries ◽  
Banking Market ◽  
The Relationship

Abstract The importance of the question about the relationship between concentration and efficiency lies in the fact that banks’ efficiency affects ability to extend loans and ensure financial stability of the banking sector. The study examines this relationship on the example of 150 banks operating between 2005 and 2019 in 11 EU and 8 non-EU countries from the SECE region. The value of profit efficiency was assessed with the stochastic frontier approach, and next regressed with the banking market concentration and bank specific and macroeconomic explanatory variables. The results for the entire sample as well as for domestic and foreign-owned banks indicate that concentration positively and nonlinearly impacts bank efficiency, both in EU and non-EU countries. Moreover, the size of a bank and income diversification help to improve efficiency of banks in the SECE region. The study shows that banks in SECE countries seem to follow the efficient structure hypothesis.

scholarly journals ANALISIS EFISIENSI PERBANKAN SYA RIAH DENGAN MENGGUNAKAN STOCHASTIC FRONTIER APPROACH PERIODE 2010–2014

2016 ◽  
Vol 3 (2) ◽  
pp. 153
Author(s):  
Indah Sukmaningrum ◽  
Hotman Tohir Pohan
Keyword(s):  
Technical Efficiency ◽  
Panel Data Analysis ◽  
Stochastic Frontier ◽  
Secondary Data ◽  
Multiple Regression Equation ◽  
Islamic Banks ◽  
Labor Costs ◽  
Stochastic Frontier Approach ◽  
Fixed Assets ◽  
Input Variables

<span class="fontstyle0">This study aimed to analyze the technical efficiency and the relationship<br />between savings, total fixed assets, and labor costs for financing the Islamic Banks in Indonesia relating to the technical efficiency. This study uses secondary data by downloading BUS quarterly reports on directory OJK in 2015. The sample used in this study were 190 samples from 10 Islamic Banks since the second quarter of 2010 up to the end 2014. Panel data analysis using the method of Stochastic Frontier Approach orientation Cobb Douglas production function and see the bank with the intermediation approach. Causality data is processed using multiple regression equation with Cobb Douglas linear function. Based on the results of this study concluded that an efficient BUS with the highest technical and Bank Panin Syariah, BUS with the lowest technical efficiency is Bank Victoria Syariah. Based on the results of all the input variables affect the output variables. And the rise and fall of proven technical efficiency due to the influence of the variable relationship</span>

scholarly journals Assessing Banking Profit Efficiency Using Stochastic Frontier Analysis

2018 ◽  
Vol 3 (4) ◽  
pp. 67-76
Author(s):  
Riko Hendrawan ◽  
Azhar A. Nasution
Keyword(s):  
Capital Market ◽  
Banking Sector ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Banking System ◽  
Efficiency Score ◽  
Maximum Efficiency ◽  
Good Efficiency ◽  
Frontier Analysis ◽  
Input Variables

Objective - The banking sector plays an important role in the Indonesian economy. The sustainability of the Indonesian banking sector will depend on the ability of every banking institution to maintain their competitiveness. Banking competitiveness is reflected in the level of efficiency of the banking system itself. Methodology/Technique - The purpose of this research is to assess the efficiency of 21 banks on the IDX between 2008-2017 using Stochastic Frontier Analysis. Findings - The findings of this research show a maximum efficiency score of 0.69 and the bank's average score among the research sample with the input and output allocation which can generate profits is 0.69 - 0.43 = 0.26. Overall, the banking sector in the Indonesian capital market between 2008 - 2017 recorded an efficiency score of 0.43. With this score, the banking system in the Indonesian capital market is still considered to be inefficient (0.43 <0.5). The results also demonstrate that the distribution of efficiency scores polarized in two poles. In the first pole, there were 11 banks that had a relatively good efficiency score (> = 0,5) and in the second pole, there were 10 banks with low efficiency scores (less than 0.5). Novelty – From the results, it can be concluded that several output variables, such as total loans (Y1) and securities (Y3), and input variables such as prices of labor (W2) and inflation (Z), have a significant effect on banking profits. Meanwhile, input variables such as the price of fund variables or the total funds (W1) and the price of physical capital were reflected in the depreciation of fixed assets (W3), and the output variables of income and interest (Y2) had an insignificant effect on bank profits. Type of Paper - Keywords: Bank Efficiency; IDX, Stochastic Frontier Analysis, Indonesia. JEL Classification: G10, G14, G19.

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