Cost and profit efficiency of listed South African banks pre and post the financial crisis

Elda du Toit and Yolanda Z. Cuba

Research in International Business and Finance, 2018, vol. 45, issue C, 435-445

Abstract: The 2008 financial crisis and the regulations that followed after the crisis have seen an increase in the safeguards to the financial system, adding additional costs to the banking sector. This has significantly impacted on the banking industry. This study investigates the change in cost and profit efficiency in the period before, during and after the financial crisis (2004–2013) in South Africa for banks listed on the Johannesburg Stock Exchange (JSE). It further seeks to explain the relationship between the cost to income ratio (CIR) and the return on average assets (ROAA), as well as in relation to business cycles. The study further seeks to understand how ownership relates to market share, CIR and ROA.

Keywords: Cost to income ratio (CIR); Return on average assets (ROAA); Financial crisis; Composite ownership index; Market share (search for similar items in EconPapers)
JEL-codes: G02 G21 G28 G32 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:45:y:2018:i:c:p:435-445

DOI: 10.1016/j.ribaf.2017.07.175

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