The Efficiency of Non-Bank Financial Intermediaries: Empirical Evidence from Malaysia
This paper investigates the performance of Malaysian non-bank financial institutions during the period of 2000-2004. Several efficiency estimates of individual NBFIs are evaluated using the non-parametric Data Envelopment Analysis (DEA) method. The findings suggest that during the period of study, s...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2008-08-01
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| Series: | The International Journal of Banking and Finance |
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| Online Access: | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8373 |
| _version_ | 1828069234104598528 |
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| author | Fadzlan Sufian |
| author_facet | Fadzlan Sufian |
| author_sort | Fadzlan Sufian |
| collection | DOAJ |
| description | This paper investigates the performance of Malaysian non-bank financial institutions during the period of 2000-2004. Several efficiency estimates of individual NBFIs are evaluated using the non-parametric Data Envelopment Analysis (DEA) method. The findings suggest that during the period of study, scale inefficiency outweighs pure technical inefficiency in the Malaysian NBFI sector. We find that the merchant banks have exhibited a higher, technical efficiency compared to their peers. The empirical findings suggest that scale efficiency tends to be more sensitive to the exclusion of risk factors, implying that potential economies of scale may be overestimated when risk factors are excluded.
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| first_indexed | 2024-04-11T00:15:06Z |
| format | Article |
| id | doaj.art-2dc4719d973c4968806649860fd70465 |
| institution | Directory Open Access Journal |
| issn | 2811-3799 2590-423X |
| language | English |
| last_indexed | 2024-04-11T00:15:06Z |
| publishDate | 2008-08-01 |
| publisher | Universiti Utara Malaysia |
| record_format | Article |
| series | The International Journal of Banking and Finance |
| spelling | doaj.art-2dc4719d973c4968806649860fd704652023-01-09T03:08:42ZengUniversiti Utara MalaysiaThe International Journal of Banking and Finance2811-37992590-423X2008-08-0152The Efficiency of Non-Bank Financial Intermediaries: Empirical Evidence from MalaysiaFadzlan Sufian0The University of Malaysia and CIMB Bank BerhadThis paper investigates the performance of Malaysian non-bank financial institutions during the period of 2000-2004. Several efficiency estimates of individual NBFIs are evaluated using the non-parametric Data Envelopment Analysis (DEA) method. The findings suggest that during the period of study, scale inefficiency outweighs pure technical inefficiency in the Malaysian NBFI sector. We find that the merchant banks have exhibited a higher, technical efficiency compared to their peers. The empirical findings suggest that scale efficiency tends to be more sensitive to the exclusion of risk factors, implying that potential economies of scale may be overestimated when risk factors are excluded. https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8373Non-Bank financial intermediariesData Envelopment Analysis (DEA)Risk |
| spellingShingle | Fadzlan Sufian The Efficiency of Non-Bank Financial Intermediaries: Empirical Evidence from Malaysia The International Journal of Banking and Finance Non-Bank financial intermediaries Data Envelopment Analysis (DEA) Risk |
| title | The Efficiency of Non-Bank Financial Intermediaries: Empirical Evidence from Malaysia |
| title_full | The Efficiency of Non-Bank Financial Intermediaries: Empirical Evidence from Malaysia |
| title_fullStr | The Efficiency of Non-Bank Financial Intermediaries: Empirical Evidence from Malaysia |
| title_full_unstemmed | The Efficiency of Non-Bank Financial Intermediaries: Empirical Evidence from Malaysia |
| title_short | The Efficiency of Non-Bank Financial Intermediaries: Empirical Evidence from Malaysia |
| title_sort | efficiency of non bank financial intermediaries empirical evidence from malaysia |
| topic | Non-Bank financial intermediaries Data Envelopment Analysis (DEA) Risk |
| url | https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8373 |
| work_keys_str_mv | AT fadzlansufian theefficiencyofnonbankfinancialintermediariesempiricalevidencefrommalaysia AT fadzlansufian efficiencyofnonbankfinancialintermediariesempiricalevidencefrommalaysia |