Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach
In the mid-1990s, the East Asian countries experienced severe financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to understand the nature of the Asian financial crisis. However, the impact of the 1997 Asian financial crisis on the efficiency of...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Routledge
2009
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| Online Access: | http://irep.iium.edu.my/5245/1/49234118.pdf |
| _version_ | 1825644641750351872 |
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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, the East Asian countries experienced severe financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to understand the nature of the Asian financial crisis. However, the impact of the 1997 Asian financial crisis on the efficiency of the financial industry has yet to be critically examined. By employing the Data Envelopment Analysis (DEA) approach the present study attempts to examine for the first time the impact of the 1997 Asian financial crisis on the efficiency of the Korean banking sector. The study focuses on three major approaches, namely, intermediation, value added, and operating approaches. The results clearly bring forth the high degree of inefficiency in the Korean banking sector, particularly a year after the Asian financial crisis. We find that the Korean banking sector has consistently exhibit higher technical efficiency levels under value added approach, while technical efficiency seems to be lowest under intermediation approach. |
| first_indexed | 2024-03-05T22:35:47Z |
| format | Article |
| id | oai:generic.eprints.org:5245 |
| institution | International Islamic University Malaysia |
| language | English |
| last_indexed | 2024-03-05T22:35:47Z |
| publishDate | 2009 |
| publisher | Routledge |
| record_format | dspace |
| spelling | oai:generic.eprints.org:52452011-12-20T07:53:06Z http://irep.iium.edu.my/5245/ Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking In the mid-1990s, the East Asian countries experienced severe financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to understand the nature of the Asian financial crisis. However, the impact of the 1997 Asian financial crisis on the efficiency of the financial industry has yet to be critically examined. By employing the Data Envelopment Analysis (DEA) approach the present study attempts to examine for the first time the impact of the 1997 Asian financial crisis on the efficiency of the Korean banking sector. The study focuses on three major approaches, namely, intermediation, value added, and operating approaches. The results clearly bring forth the high degree of inefficiency in the Korean banking sector, particularly a year after the Asian financial crisis. We find that the Korean banking sector has consistently exhibit higher technical efficiency levels under value added approach, while technical efficiency seems to be lowest under intermediation approach. Routledge 2009 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5245/1/49234118.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2009) Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach. Global Economic Review, 38 (4). pp. 335-369. ISSN 1226-508x (print); 1744-3873 (online) http://www.tandf.co.uk/journals/titles/1226508x.asp DOI: 10.1080/12265080903391735 |
| spellingShingle | HG1501 Banking Sufian, Fadzlan Habibullah, Muzafar Shah Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach |
| title | Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach |
| title_full | Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach |
| title_fullStr | Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach |
| title_full_unstemmed | Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach |
| title_short | Asian financial crisis and the evolution of Korean Banks efficiency: a DEA approach |
| title_sort | asian financial crisis and the evolution of korean banks efficiency a dea approach |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/5245/1/49234118.pdf |
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