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 financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to explain the Asian financial crisis. However, the impact of the Asian financial crisis of 1997 on the efficiency of the banking s...
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| Format: | Article |
| Language: | English |
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Sage Publications
2012
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| Online Access: | http://psasir.upm.edu.my/id/eprint/14759/1/Developments%20in%20the%20efficiency%20of%20the%20Malaysian%20banking%20sector%20the%20impacts%20of%20financial%20disruptions%20and%20exchange%20rate%20regimes.pdf |
| _version_ | 1825945489906860032 |
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| author | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_facet | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_sort | Sufian, Fadzlan |
| collection | UPM |
| description | In the mid-1990s, East Asian countries have experienced severe financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to explain the Asian financial crisis. However, the impact of the Asian financial 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 efficiency of the Malaysian banking sector around the Asian financial 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. |
| first_indexed | 2024-03-06T07:32:20Z |
| format | Article |
| id | upm.eprints-14759 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:32:20Z |
| publishDate | 2012 |
| publisher | Sage Publications |
| record_format | dspace |
| spelling | upm.eprints-147592019-04-09T03:52:48Z http://psasir.upm.edu.my/id/eprint/14759/ Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes Sufian, Fadzlan Habibullah, Muzafar Shah In the mid-1990s, East Asian countries have experienced severe financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to explain the Asian financial crisis. However, the impact of the Asian financial 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 efficiency of the Malaysian banking sector around the Asian financial 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 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/14759/1/Developments%20in%20the%20efficiency%20of%20the%20Malaysian%20banking%20sector%20the%20impacts%20of%20financial%20disruptions%20and%20exchange%20rate%20regimes.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 1464-9934; ESSN: 1477-027X https://journals.sagepub.com/doi/abs/10.1177/146499341101200102 10.1177/146499341101200102 |
| spellingShingle | 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 |
| url | http://psasir.upm.edu.my/id/eprint/14759/1/Developments%20in%20the%20efficiency%20of%20the%20Malaysian%20banking%20sector%20the%20impacts%20of%20financial%20disruptions%20and%20exchange%20rate%20regimes.pdf |
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