What Explains Differences in the Efficiency of Non-Commercial Bank Financial Intermediaries? Empirical Evidence from Malaysia

Fadzlan Sufian

Asian Academy of Management Journal of Accounting and Finance (AAMJAF), 2007, vol. 3, issue 1, 37-57

Abstract: Institutions (NCBFIs) during the period of 2000 to 2004. The efficiency estimates of individual NCBFIs are evaluated using the non-parametric Data Envelopment Analysis (DEA) method. The method allows us to distinguish individual NCBFIs technical efficiency (TE) along with its mutually exhaustive components of pure technical efficiency (PTE), and scale efficiency (SE) components. Additionally we have performed a series of parametric and non-parametric tests to examine whether the merchant banks and finance companies were drawn from the same population. The findings suggest that during the period of study, scale inefficiency dominates pure technical inefficiency in the Malaysian NCBFI sector. We found that the merchant banks have exhibited higher technical efficiency relative to its finance companies peers. The results from the parametric and non-parametric tests do not reject the null hypothesis of the merchant banks and finance companies sharing the same production technology, implying that it is appropriate to construct a common frontier.

Keywords: Non-Commercial Bank Financial Institutions (NCBFIs); Data Envelopment Analysis (DEA); Malaysia (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://web.usm.my/journal/aamjaf/vol3-1-2007/3-1-3.pdf (application/pdf)

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:usm:journl:aamjaf00301_37-57

Access Statistics for this article

More articles in Asian Academy of Management Journal of Accounting and Finance (AAMJAF) from Penerbit Universiti Sains Malaysia Contact information at EDIRC.
Bibliographic data for series maintained by Journal Division, Penerbit Universiti Sains Malaysia ().