Productivity measurement of commercial banks in Malaysia with non-performing loans

Noor Asiah Ramli, S. Sarifah Radiah Shariff and Nurhayati Hamid

Global Business and Economics Review, 2019, vol. 21, issue 5, 666-682

Abstract: In the banking sector, productivity has been considered essential to the development process. This study is determining the productivity of 20 commercial banks in Malaysia consisting of eight domestic banks and 12 foreign banks between the year 2005 and 2014. The Malmquist Luenberger productivity index (MLPI) approach is employed when incorporating undesirable output, i.e., non-performing loan. The productivity measured using MLPI shows that the foreign banks perform at a higher productivity change progression compared to domestic banks. The total geometric mean for productivity change in 2008/2009 is found to be the highest percentage of deterioration which is 17.4%, while the maximum progress of productivity is reported in 2010/2011 which is 25.2%. Overall, the finding exhibits that technological changes, i.e., the innovation effect is the main contributor to the productivity changes during the study period.

Keywords: efficiency change; Malmquist Luenberger productivity index; MLPI; productivity; productivity change; technological change; Malaysia. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=101865 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:21:y:2019:i:5:p:666-682

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().