Determining the Convergence Speed of Cost Efficiency in the Iranian Banking Industry
Banks as economic firms try to provide banking services in low cost. The efficiency of banking system and its convergence among the Iranian banks is a top priority for planners and decision-makers. In this research, the data of 9 Iranian banks (6 commercial and 3 specialized) during 2001-2012 period...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2016-12-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-1397-en.pdf |
| _version_ | 1797803297453637632 |
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| author | Heshmatollah Asgari Mahin Khodarahmi |
| author_facet | Heshmatollah Asgari Mahin Khodarahmi |
| author_sort | Heshmatollah Asgari |
| collection | DOAJ |
| description | Banks as economic firms try to provide banking services in low cost. The efficiency of banking system and its convergence among the Iranian banks is a top priority for planners and decision-makers. In this research, the data of 9 Iranian banks (6 commercial and 3 specialized) during 2001-2012 period are utilized according to intermediate approach and Stochastic Frontier Analysis (SFA) within a translog cost function and Model I of Battese and Colli (1992). The results show that average efficiency for commercial and specialized banks has been 78.95% and 87.58%, respectively, which imply that the average efficiency of specialized banks is more than that of commercial banks. In addition, the convergence process has been studied as a result of economic growth models. The speed of efficiency convergence has been estimated by -571% in absolute model, and -576% in conditional model, respectively. The average efficiency growth is decreasing and the efficiency adjustment speed is convergent. |
| first_indexed | 2024-03-13T05:18:43Z |
| format | Article |
| id | doaj.art-f5a5a9b10c7f4049bb7152ca8dfee537 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:18:43Z |
| publishDate | 2016-12-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-f5a5a9b10c7f4049bb7152ca8dfee5372023-06-15T20:22:09ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322016-12-011643756Determining the Convergence Speed of Cost Efficiency in the Iranian Banking IndustryHeshmatollah Asgari0Mahin Khodarahmi1 Associate Professor of Economics, Ilam University MA in Economics Banks as economic firms try to provide banking services in low cost. The efficiency of banking system and its convergence among the Iranian banks is a top priority for planners and decision-makers. In this research, the data of 9 Iranian banks (6 commercial and 3 specialized) during 2001-2012 period are utilized according to intermediate approach and Stochastic Frontier Analysis (SFA) within a translog cost function and Model I of Battese and Colli (1992). The results show that average efficiency for commercial and specialized banks has been 78.95% and 87.58%, respectively, which imply that the average efficiency of specialized banks is more than that of commercial banks. In addition, the convergence process has been studied as a result of economic growth models. The speed of efficiency convergence has been estimated by -571% in absolute model, and -576% in conditional model, respectively. The average efficiency growth is decreasing and the efficiency adjustment speed is convergent.http://ecor.modares.ac.ir/article-18-1397-en.pdfefficiencystochastic frontier analysis (sfa)bankbattese and colli modelsigma convergence modelbeta convergence model |
| spellingShingle | Heshmatollah Asgari Mahin Khodarahmi Determining the Convergence Speed of Cost Efficiency in the Iranian Banking Industry پژوهشهای اقتصادی efficiency stochastic frontier analysis (sfa) bank battese and colli model sigma convergence model beta convergence model |
| title | Determining the Convergence Speed of Cost Efficiency in the Iranian Banking Industry |
| title_full | Determining the Convergence Speed of Cost Efficiency in the Iranian Banking Industry |
| title_fullStr | Determining the Convergence Speed of Cost Efficiency in the Iranian Banking Industry |
| title_full_unstemmed | Determining the Convergence Speed of Cost Efficiency in the Iranian Banking Industry |
| title_short | Determining the Convergence Speed of Cost Efficiency in the Iranian Banking Industry |
| title_sort | determining the convergence speed of cost efficiency in the iranian banking industry |
| topic | efficiency stochastic frontier analysis (sfa) bank battese and colli model sigma convergence model beta convergence model |
| url | http://ecor.modares.ac.ir/article-18-1397-en.pdf |
| work_keys_str_mv | AT heshmatollahasgari determiningtheconvergencespeedofcostefficiencyintheiranianbankingindustry AT mahinkhodarahmi determiningtheconvergencespeedofcostefficiencyintheiranianbankingindustry |