Technical Efficiency and Total Factor Productivity in the Kazakh Banking Industry

Adnan Kasman () and Kamila Mekenbayeva ()
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Adnan Kasman: Department of Economics, Faculty of Business, Dokuz Eylul University, Izmir, Turkey
Kamila Mekenbayeva: National Bank of Kazakhstan, Department of Research and Strategic Analysis, Division of Monitoring of Enterprises Position, Almaty, Kazakhstan

Acta Oeconomica, 2016, vol. 66, issue 4, 685-709

Abstract: This paper investigates the technical efficiency and productivity of Kazakh commercial banks over the period 2000–2013. Non-parametric approaches, namely the Data Envelopment Analysis and the Malmquist index are employed to calculate technical efficiency and productivity. In addition, a second-stage regression is also estimated to identify the determinants of efficiency. The results indicate that banks in Kazakhstan operate below their optimum levels, with larger banks being more efficient than smaller ones. The results also indicate the presence of economies of scale for banks of all sizes. The efficiency of banks is found to be significantly and positively related to profitability, capitalisation, bank size, and liquidity. The results further indicate that Kazakh banks seem to have experienced a significant productivity growth over the sample period.

Keywords: Kazakh banks; technical efficiency; Malmquist total factor productivity index; DEA (search for similar items in EconPapers)
JEL-codes: D24 G21 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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