scholarly journals The Study on the Operating Efficiency of Rural Banks Based on DEA Model: A Case of Jiangsu Province

2017 ◽  
Vol 9 (8) ◽  
pp. 212 ◽  
Author(s):  
Xu Lingjuan ◽  
Wang Yanjun ◽  
Zhu Huailei
Keyword(s):  
Commercial Banks ◽  
Yangtze River Delta ◽  
Jiangsu Province ◽  
Operating Efficiency ◽  
Dea Model ◽  
Management Fees ◽  
Net Profit ◽  
Different Types ◽  
Southern Jiangsu ◽  
Business And Management

The paper takes Jiangsu province as example in Yangtze River Delta, which is economically developed regions. According to previous research and characteristics of rural banks in Jiangsu Province, the input indexes are selected as the number of employees, the number of outlets, total deposits, business and management fees. And the output indexes include total loans, net interest income and net profit. Using DEA model to analyze the operating efficiency of the 65 rural banks in 2016, the paper compares the operating efficiency in different regions and different types of originating bank. The analysis shows that, compared with the central and northern Jiangsu, operating efficiency of rural banks in southern Jiangsu is generally high. The comprehensive technical efficiency value of sample banks that originated by the state-owned banks and joint-stock banks is significantly higher than that originated by rural commercial banks and city commercial banks. Finally, the paper puts forward some suggestions on how to improve the operating efficiency of rural banks.

The Impact of Non-Performing Loans on Bank's Operating Efficiency for Taiwan Banking Industry

2008 ◽  
Vol 11 (02) ◽  
pp. 287-304 ◽  
Author(s):  
Chiung-Ju Liang ◽  
Ming-Li Yao ◽  
Dar-Yeh Hwang ◽  
Wei-Hsiung Wu
Keyword(s):  
Banking Industry ◽  
Operational Efficiency ◽  
The Other ◽  
Operating Efficiency ◽  
Dea Model ◽  
Private Banks ◽  
Different Types ◽  
Public Banks ◽  
The Impact

The DEA model is applied to analyze the operational efficiency of Taiwan's publicly-listed banks to reveal the influence of the rising non-performing loan ratio (NPLR) on Taiwan's banking industry. After taking into account the NPLR and the different classifications of banks, the respective performances of different types of banks exhibit the following variations and characteristics: the originally more-efficient new private banks significantly fell behind the old public banks in terms of efficiency scores after the NPLR was included. The old private banks' operational efficiency fell behind that of the other banks at all times. The productivity of all new private banks exceeded that of the other banks.

How monetary policies and ownership structure affect bank supply chain efficiency: a DEA-based case study

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yelin Hu ◽  
Bingjing Li ◽  
Ying Zha ◽  
Douqing Zhang
Keyword(s):  
Supply Chain ◽  
Ownership Structure ◽  
Commercial Banks ◽  
Banking Industry ◽  
Operating Efficiency ◽  
Bank Performance ◽  
Monetary Policies ◽  
Content Type ◽  
Dea Model ◽  
Supply Chain Efficiency

PurposeThe banking industry plays a key role in China's financial industry. In the past decade, the speed of the development of China's commercial banks has gradually declined. Commercial banks with different ownership structures also have certain differences in terms of operating efficiency, and their monetary policies are often different. Therefore, the authors study the impact of ownership structure on the efficiency of commercial banks under different monetary policies. This study also provides relevant reference opinions with regard to the healthy, sustainable and stable development of China's banking industry.Design/methodology/approachThis paper mainly uses the two-stage data envelope analysis (DEA) model under meta-frontier and group frontier to study the deposit and loan efficiency changes of 16 banks from 2007 to 2014 under ownership structure heterogeneity. Furthermore, the model introduces the balance parameters between deposits and loans, in order to realize the mathematical abstraction description of macro-monetary policy.FindingsFirst, based on bank efficiency analysis, the paper finds that most banks' loan efficiency is higher than their deposits. Second, the paper concludes that different monetary policies have little effect on bank deposit and loan efficiency, while ownership heterogeneity has a significant impact on bank performance. Finally, through the decomposition of the sources of inefficiency in bank performance, this paper finds that management and technology are two factors that affect the inefficiency of banks.Originality/valueThe authors work contributes to the existing literature in the following ways: First, to the best of the authors’ knowledge, this is the first attempt to use the DEA model to study the relationship between monetary policies and bank supply chain efficiency. The results may provide additional managerial implications for the banking industry from the perspective of monetary policies. The result is helpful in terms of explaining how and why banks should strengthen risk management, as well as how to deal with non-performing loans in management terms and finally, why banks should make financial technology innovations in technology terms.

Assessing the efficiency of financial supply chain for Chinese commercial banks: a two-stage AR-DEA model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guangcheng Xu ◽  
Zhixiang Zhou
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Two Stage ◽  
Content Type ◽  
Dea Model ◽  
Operation Process ◽  
Different Types ◽  
Internet Finance ◽  
Research Findings ◽  
The Difference

PurposeThe purpose of this paper is to evaluate Chinese commercial banks efficiency based on different non-performing loans in the process. Moreover, we identified the difference among different types of banks (state-owned commercial banks, joint-stock commercial banks and city commercial banks) and different operation stages (deposit producing sub-stage, profit earning sub-stage and overall stage).Design/methodology/approachAssurance region (AR) restrictions are combined with a two-stage data envelopment analysis (DEA) model. The efficiency scores of 26 Chinese commercial banks (listed banks) are analyzed by a two-stage AR-DEA model in the study period of 2013–2017.FindingsThe results show that state-owned commercial banks had better performance than joint-stock commercial banks and city commercial banks over the five-year study period. The development of Internet finance has positive impact on deposit producing sub-stage and insignificant non-homogeneity existed among the different groups in the circumstances of considering different non-performing loans.Practical implicationsThe research findings provide practical insights that help bank managers find the defects in operation process, which need to be improved.Originality/valuePrevious studies viewed non-performing loans as an integrated whole variable. The paper divides non-performing loans into three categories based on the risk and investigates the effect of different types of loans on bank efficiency scores.

scholarly journals ANALISIS PERBEDAAN RASIO KEUANGAN BANK UMUM KONVESIONAL DAN BANK UMUM SYARIAH SERTA PENGARUHNYA TERHADAP PENYALURAN KREDIT ATAU PEMBIAYAAN (Studi empiris yang tedrdaftar di BEI periode 2013-2016)

2017 ◽  
Vol 5 (1) ◽  
pp. 9-23
Author(s):  
Dika Ismawati ◽  
Edy Supriyono
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Operating Efficiency ◽  
Analysis Technique ◽  
Significant Difference ◽  
Negative Effect ◽  
General Data

This study aims to obtain evidence of differences in financial ratios of conventional commercial banks and sharia commercial banks, as well as the influence of financial ratios, liquidity, capital adequacy, problem loans, profitability, operating efficiency of lending. This study uses secondary data. The sample in this research is conventional commercial bank and sharia public bank listed on BEI with 4 year observation period (2013-2016). This sample was chosen by purposive sampling method. Independent sample t-test is used to test whether there is difference of average of two interconnected samples, multiple linear regression is used as data analysis technique as many as 148 general data of banking company, conventional bank and syariah commercial bank as many as 44 company data period 2013-2016 . The results of this study indicate that there are differences in average liquidity, problem loans, profitability, operating efficiency, While the average capital adequacy there is no significant difference between conventional commercial banks and sharia banks. While liquidity and profitability have a positive effect on lending, non performing loans and operating efficiency have a negative effect on lending, and capital adequacy does not affect credit disbursement.  

scholarly journals Commercial Banks Versus BPR: Advantages Based On Perception, Hope And Customer Interest

2017 ◽  
Vol 1 (2) ◽  
pp. 102-112
Author(s):  
Hesti Budiwati
Keyword(s):  
Competitive Advantage ◽  
Six Sigma ◽  
Commercial Banks ◽  
Public Trust ◽  
Lean Six Sigma ◽  
Point Of View ◽  
Competitive Advantages ◽  
Public Funds ◽  
Different Types ◽  
Six Sigma Approach

Commercial banks and Bank Perkreditan Rakyat are two different types of banks whose existence in society aims to raise and channel public funds to improve people's lives. The facts show that there is a sharp competition between the two types of banks in terms of gaining public trust to become bank customer but although these two types of banks are different but still able to develop well in society. This study aims to identify the factors that become competitive advantage at Commercial Banks and Bank Perkreditan Rakyat from the customer's point of view based on customers' perceptions, expectations and interests so banks can determine competitive strategy. The approach used in this research is Lean Six Sigma approach with a sample of 60 respondents consisting of 30 customers of Commercial Banks and 30 customers of Bank Perkreditan Rakyat. Respondents will be asked to respond to research instruments based on their perceptions, expectations and interests. The results of the study there are five competitive advantages in Commercial Banks (1) promotions made, (2) reward appeal, (3) saving security, (4) cleanliness and comfort of the room, (5) friendliness, courtesy and neatness. Bank Perkreditan Rakyat obtained competitive advantage that is (1) cleanliness and comfort of the room,(2) ability and alertness of the officers, (3) friendliness, courtesy and neatness, (4) saving security, (5) familiarity  of the officer with the customer. In addition there are similarities there are interesting differences that is on the excellence of promotional activities and the attractiveness of prizes at Commercial Banks. and the familiarity of officers with customers at Bank Perkreditan Rakyat.

scholarly journals Electronic Banking and Financial Performance of Commercial Banks in Kenya

2019 ◽  
Vol 3 (II) ◽  
pp. 293-304
Author(s):  
Maria Mueni Mutisya ◽  
Gerald Atheru
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Internet Banking ◽  
Business Environment ◽  
Mobile Banking ◽  
Electronic Banking ◽  
Return On Assets ◽  
Independent Variables ◽  
Net Profit ◽  
Automated Teller Machine

Information technology has changed the traditional ways of doing business to a digital and electronic way that has led to globalization. The banking industry has been forced by the wave of electronic payment system in the business environment to change from its traditional ways such as: long queues as customers waited to be served, delay in the clearing house as representatives of different banks waited to settle their dues and manual work that resulted to errors. The main purpose of the study was to determine the effect of electronic banking on the financial performance of commercial banks in Kenya. The specific objectives were to determine the extend of internet, mobile, automated teller machine and debit/credit card banking adoption and its effect on financial performance. The study covered a period of five years that is from the year 2011 to the year 2015 and adopted descriptive research design. The data collected was analyzed by the use of both descriptive and inferential statistics procedures. Primary and secondary data was collected from the 34 commercial banks that responded leading to a respond rate of 79.04% out of the 43 commercial banks. The trade analysis showed that internet banking was recognized and accepted by the Kenyan commercial banks and the Kenyans as a way of transacting. Electronic banking was found to be positive and significantly related to the financial performance of the commercial banks in Kenya. This was attributed by an R Square of 0.688 for Return On Assets, 0.63 for Net Profit and 0.277 for Return On Equity indicating that the independent variables in the study were able to give information of up to 68.8%, 63% and 27.7% respectively while the remaining 31.2%, 27% and 72.3% could not be explained in the study but could be explained using other variables outside the study. All the independent variables were (internet banking, Mobile banking, Automated Teller Machine banking and Debit/Credit banking) found to be positively and significantly related to the Return On Assets while only mobile banking and internet banking were found to be positively and significantly related to Net Profit since their p Values were less 0.05. Automated Teller Machine banking showed a positive relation that was insignificant with the Return On Equity.The study recommends that, electronic banking should be employed by commercial banks through proper management policies since it has shown improved efficiency and financial performance. For further studies, areas of crime technology, quality of banking services, electronic fund transfer and performing loans should be looked at. This is an open-access article published and distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License of United States unless otherwise stated. Access, citation and distribution of this article is allowed with full recognition of the authors and the source.

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