Determinants of Sino-ASEAN Banking Efficiency: How Do Countries Differ?

Banna, Hasanul; Syed, Karim Bux Shah; Noman, Abu Hanifa Md.; Ahmad, Rodina; Masud, Muhammad Mehedi

doi:10.3390/economies7010013

Cited by 17 publications

(19 citation statements)

References 64 publications

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“…It was also consistent with the economies of scale theory that when a company has a larger size, the operating costs per unit will be lower. The results of this research are in line with previous studies conducted by Banna et al (2019); Cavallo and Rossi (2010); Fernandes et al (2018); Sufian et al (2016).…”

Section: Discussionsupporting

confidence: 92%

“…Therefore, the second hypothesis that can be proposed is that bank size affects bank efficiency positively. This is supported by several previous studies such as by Banna et al (2019), Fernandes et al (2018), Sufian et al (2016), and Cavallo and Rossi (2002). For this reason, hypotheses that can be proposed are as follows:…”

Section: Hypotheses Formulationsupporting

confidence: 90%

“…Meanwhile, Fernandes, Stasinakis, and Bardarova (2018); Mamatzakis, Matousek, and Vu (2016); Partovi and Matousek (2019); Sufian, Kamarudin, and Nassir (2016) found a positive correlation between bank and capitalization. Also, Atahau, Cronje, and Majid (2019); Banna, Shah, Noman, Ahmad, and Masud (2019); Cavallo and Rossi (2010); Fernandes et al (2018) use the economies of scale theory and found that size and efficiency have a positive relationship.…”

Section: Background Of the Studymentioning

confidence: 99%

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Determinants of the Commercial Bank’s Efficiency in ASEAN

Anto¹,

Pangestuti²,

Wahyudi³

et al. 2021

RWE

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The purpose of this study is to analyze the influence of capitalization, bank size, bank age, and loan to asset ratio (LAR) to bank efficiency in ASEAN-5 countries (Singapore, Indonesia, Thailand, Malaysia, and the Philippines). Net interest margin (NIM) and non-net interest income (Non-NIM) were used as control variables. There was a total of 58 banks used as a sample using a purposive sampling technique. There were two stages of the analytical method used: data envelopment analysis (DEA) approach – to provide estimates of bank efficiency, and multiple regression linear – consists of the statistical F-test and t-test, coefficient of determination (R2) test and the classic assumption test. The results show that capitalization and bank age affect bank efficiency negatively, while bank size and LAR affect bank efficiency positively. The banks are suggested to consider optimizing their capital to continue to operate efficiently, increase their assets to be more efficient, the older banks are expected to be able to adjust to technological developments, and the banks are also expected to increase the amount of credit by monitoring its quality to be efficient.

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Section: Discussionsupporting

confidence: 92%

Section: Hypotheses Formulationsupporting

confidence: 90%

Section: Background Of the Studymentioning

confidence: 99%

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Determinants of the Commercial Bank’s Efficiency in ASEAN

Anto¹,

Pangestuti²,

Wahyudi³

et al. 2021

RWE

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show abstract

“…It is important to note that there was not any significant variation in the level of cost efficiency across MENA countries. Banna et al, (2019) Sino-ASEAN region…”

Section: -2011mentioning

confidence: 99%

Evaluating European Bank Efficiency Using Data Envelopment Analysis: Evidence in the Aftermath of the Recent Financial Crisis

Ferreira

2020

Int Adv Econ Res

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This paper seeks to contribute to the analysis of the bank efficiency in the European Union in the aftermath of the recent crisis, using Data Envelopment Analysis (DEA) and considering a sample of 485 banks from all current EU member-states between 2011 and 2017. The results obtained confirm the existence of bank inefficiency, and that this inefficiency is mostly due to inefficient managerial performance and bad combinations of the considered bank inputs and outputs. The results also provide enough evidence of appropriate scale production and dynamic technological changes during the considered interval. Moreover, the results obtained using panel estimates to explain the bank total factor productivity changes allow us to conclude that the choices of the banks in terms of the fixed assets, the profit before tax to the average assets, as well as the ratio of the off-balance sheet items to total assets contribute positively to the productivity changes. On the other side, the ratio of the impaired loans to equity, and the bank interest margins are not in line with the total factor productivity changes of the EU banking sector.

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“…Firstly, the commercial banks are predominant sources of financial assets, holding over 80% of the region's financial assets. Secondly, the banking sector enhancement has been supported by the national governments to ensure the banking industry security (Banna et al, 2019). This entails the crucial position of the banking sector in the growth achievement, particularly across the ASEAN area.…”

Section: Introductionmentioning

confidence: 99%

Interdependence between banking earnings, banking security and growth achievement: case study in the ASEAN community

Pham¹

2020

JED

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PurposeThe main purpose of this paper is to examine the existence of interdependence amongst banking earnings, banking security and growth performance across the Association of Southeast Asian Nations (ASEAN) region.Design/methodology/approachThis paper utilizes a panel autoregressive distributed lag method with the annual data of nine ASEAN members over 1996–2017.FindingsOnly the short-run Granger causal impact of banking profitability on economic expansion is supported, while the long-run Granger causality between all the variables is strongly recognized. Increased banking well-being supports economic development, while higher banking security might have inverse impacts. However, increasing the banking profit without the corresponding better soundness can be detrimental to the economic growth in the short run and much more in the long run. Thus, improving banking profitability and stability simultaneously has positive net effects on the economic development.Research limitations/implicationsThis research is restricted to unavailable data and limited measurements of both banking profitability and stability. Further inclusion of other macro-economic variables, other banking development aspects or even non-banking indicators should also be considered.Practical implicationsNational governments should emphasize a convenient financial environment, which can strongly enhance the positive relationship between banking earnings, banking safeness and output growth. Also, the relevant policies on higher banking well-being and stricter security obligations have to be simultaneously maintained.Originality/valueFew papers have inspected the interrelationship between banking stability, banking profitability and economic growth, particularly in the ASEAN region. This causes the banking literature shortage, as well as insufficient insights for the financial policymakers into their endogenous dynamics. Thus, the study is the first attempt to fulfil the research gap.

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Determinants of Sino-ASEAN Banking Efficiency: How Do Countries Differ?

Cited by 17 publications

References 64 publications

Determinants of the Commercial Bank’s Efficiency in ASEAN

Determinants of the Commercial Bank’s Efficiency in ASEAN

Evaluating European Bank Efficiency Using Data Envelopment Analysis: Evidence in the Aftermath of the Recent Financial Crisis

Interdependence between banking earnings, banking security and growth achievement: case study in the ASEAN community

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