Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes

In the mid-1990s, East Asian countries have experienced severe fi nancial crisis that were followed by deep economic downturns. A variety of methodologies have been used to explain the Asian fi nancial crisis. However, the impact of the Asian fi nancial crisis of 1997 on the efficiency of the bankin...

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Bibliografski detalji
Glavni autori: Sufian, Fadzlan, Habibullah, Muzafar Shah
Format: Članak
Jezik:English
Izdano: Sage Publications 2012
Teme:
Online pristup:http://irep.iium.edu.my/14903/1/PIDS_12-1_02~Sufian_%26_Habibullah.pdf
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author Sufian, Fadzlan
Habibullah, Muzafar Shah
author_facet Sufian, Fadzlan
Habibullah, Muzafar Shah
author_sort Sufian, Fadzlan
collection IIUM
description In the mid-1990s, East Asian countries have experienced severe fi nancial crisis that were followed by deep economic downturns. A variety of methodologies have been used to explain the Asian fi nancial crisis. However, the impact of the Asian fi nancial crisis of 1997 on the efficiency of the banking sector has not been studied yet. The present article attempts to provide new empirical evidence on the effi ciency of the Malaysian banking sector around the Asian fi nancial crisis. The efficiency estimates of individual banks are evaluated by using the non-parametric data envelopment analysis (DEA) method. The results indicate that the foreign banks have exhibited higher technical efficiency compared to their domestic bank counterparts. However, the results suggest that the foreign banks were severely affected by the Asian financial crisis, implying that the foreign banks are not insulated from unexpected events like the Asian financial crisis of 1997.
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spelling oai:generic.eprints.org:149032012-11-08T02:54:21Z http://irep.iium.edu.my/14903/ Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes Sufian, Fadzlan Habibullah, Muzafar Shah HG Finance HG1501 Banking In the mid-1990s, East Asian countries have experienced severe fi nancial crisis that were followed by deep economic downturns. A variety of methodologies have been used to explain the Asian fi nancial crisis. However, the impact of the Asian fi nancial crisis of 1997 on the efficiency of the banking sector has not been studied yet. The present article attempts to provide new empirical evidence on the effi ciency of the Malaysian banking sector around the Asian fi nancial crisis. The efficiency estimates of individual banks are evaluated by using the non-parametric data envelopment analysis (DEA) method. The results indicate that the foreign banks have exhibited higher technical efficiency compared to their domestic bank counterparts. However, the results suggest that the foreign banks were severely affected by the Asian financial crisis, implying that the foreign banks are not insulated from unexpected events like the Asian financial crisis of 1997. Sage Publications 2012-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/14903/1/PIDS_12-1_02~Sufian_%26_Habibullah.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2012) Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes. Progress in Development Studies, 12 (1). pp. 19-46. ISSN 1477-027X (O), 1464-9934 (P) http://intl-pdj.sagepub.com/content/12/1/19.abstract 10.1177/146499341101200102
spellingShingle HG Finance
HG1501 Banking
Sufian, Fadzlan
Habibullah, Muzafar Shah
Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes
title Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes
title_full Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes
title_fullStr Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes
title_full_unstemmed Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes
title_short Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes
title_sort developments in the efficiency of the malaysian banking sector the impacts of financial disruptions and exchange rate regimes
topic HG Finance
HG1501 Banking
url http://irep.iium.edu.my/14903/1/PIDS_12-1_02~Sufian_%26_Habibullah.pdf
work_keys_str_mv AT sufianfadzlan developmentsintheefficiencyofthemalaysianbankingsectortheimpactsoffinancialdisruptionsandexchangerateregimes
AT habibullahmuzafarshah developmentsintheefficiencyofthemalaysianbankingsectortheimpactsoffinancialdisruptionsandexchangerateregimes