BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH
The paper provides a new approach to modeling bank efficiency. Unlike previous bank efficiency studies, the present paper employs the data envelopment analysis (DEA) method on quarterly data to construct the efficiency frontiers. The Malaysian banking sector is used for a case study. The results sho...
| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius University Press
2010-01-01
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| Series: | Ekonomika |
| Online Access: | https://www.journals.vu.lt/ekonomika/article/view/982 |
| _version_ | 1811329579516690432 |
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| author | Fadzlan Suflan |
| author_facet | Fadzlan Suflan |
| author_sort | Fadzlan Suflan |
| collection | DOAJ |
| description | The paper provides a new approach to modeling bank efficiency. Unlike previous bank efficiency studies, the present paper employs the data envelopment analysis (DEA) method on quarterly data to construct the efficiency frontiers. The Malaysian banking sector is used for a case study. The results show that the Malaysian banking sector has exhibited the mean technical efficiency of 97.3%, suggesting the minimal input waste of 2.7%. The empirical findings suggest that the pure technical efficiency outweighs the scale efficiency in determining the Malaysian banking sector’s technical efficiency. The results imply that, although the Malaysian banking sector has been efficient in managerial terms, it has been operating at a non-optimal scale of operations.
p> |
| first_indexed | 2024-04-13T15:47:18Z |
| format | Article |
| id | doaj.art-3c129eee756e46f0b075e9f7c716c1fe |
| institution | Directory Open Access Journal |
| issn | 1392-1258 2424-6166 |
| language | English |
| last_indexed | 2024-04-13T15:47:18Z |
| publishDate | 2010-01-01 |
| publisher | Vilnius University Press |
| record_format | Article |
| series | Ekonomika |
| spelling | doaj.art-3c129eee756e46f0b075e9f7c716c1fe2022-12-22T02:40:57ZengVilnius University PressEkonomika1392-12582424-61662010-01-0189210.15388/Ekon.2010.0.982BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACHFadzlan SuflanThe paper provides a new approach to modeling bank efficiency. Unlike previous bank efficiency studies, the present paper employs the data envelopment analysis (DEA) method on quarterly data to construct the efficiency frontiers. The Malaysian banking sector is used for a case study. The results show that the Malaysian banking sector has exhibited the mean technical efficiency of 97.3%, suggesting the minimal input waste of 2.7%. The empirical findings suggest that the pure technical efficiency outweighs the scale efficiency in determining the Malaysian banking sector’s technical efficiency. The results imply that, although the Malaysian banking sector has been efficient in managerial terms, it has been operating at a non-optimal scale of operations. p>https://www.journals.vu.lt/ekonomika/article/view/982 |
| spellingShingle | Fadzlan Suflan BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH Ekonomika |
| title | BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH |
| title_full | BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH |
| title_fullStr | BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH |
| title_full_unstemmed | BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH |
| title_short | BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH |
| title_sort | banking sector efficiency a dea and time series approach |
| url | https://www.journals.vu.lt/ekonomika/article/view/982 |
| work_keys_str_mv | AT fadzlansuflan bankingsectorefficiencyadeaandtimeseriesapproach |