 Bank-specific, Industry-specific and Macroeconomic Determinants of Bank EfficiencyFadzlan Sufian and Muzafar Shah Habibullah Margin: The Journal of Applied Economic Research, 2010, vol. 4, issue 4, 427-461 Abstract: This paper examines the efficiency of the Thai banking sector from 1999 to 2008 by using the data envelopment analysis (DEA) method. The results indicate that inefficiency in the sector stems mainly from scale rather than pure technical efficiencies. The findings suggest that small banks are most efficient, while medium-sized banks have been the least efficient banking group. Domestic banks have been relatively more efficient than their foreign bank peers, which can be attributed largely to a higher pure technical efficiency (PTE) level. The results from the multivariate regression analysis suggest that banks with higher loans intensity and which are relatively better capitalised tend to exhibit higher efficiency levels. On the other hand, credit risk is negatively related to bank efficiency. The empirical findings suggest that the recent global financial crisis exerts a negative impact on the efficiency of Thai banks. Keywords: Banks; Efficiency; Data Envelopment Analysis; Panel Regression Analysis; Thailand; JEL Classification: G21 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:mareco:v:4:y:2010:i:4:p:427-461 DOI: 10.1177/097380101000400403 Access Statistics for this article More articles in Margin: The Journal of Applied Economic Research from National Council of Applied Economic Research |
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