Efficiency of banks in a developing economy: The case of India

Sathye, Milind

doi:10.1016/s0377-2217(02)00471-x

Cited by 325 publications

(266 citation statements)

References 16 publications

Supporting

Mentioning

245

Contrasting

Unclassified

Order By: Relevance

“…This negative relationship between ISSN 1946-052X 2017 domestic private ownership and bank performance might be due to the high fixed costs they bear during the expansionary phase or the ineffective strategy to attract more customer deposits at low cost. The result is consistent with the result found by (Chaabane and Loukil, 2005;Sathye, 2003;Wanniarachchige, 2011).…”

Section: Asian Journal Of Finance and Accountingsupporting

confidence: 93%

“…The result is statistically significant at 5%. The positive effect of government ownership on bank performance is consistent with the previous results by Loukil and Chaabane, 2005;Sathye, 2003 andWanniarachchige, 2011 who refer the positive relation between state ownership and bank performance to the strong support of the government and long experience in the sector. Governmental banks may enjoy superior advantage in attracting customer deposits at lower costs compared to foreign and domestic private counterparts.…”

Section: Asian Journal Of Finance and Accountingsupporting

confidence: 91%

“…The findings reveal astatistically significant positive association between governmental ownership and the customer at 1% in the four models.This result is consistent with (Loukil and Chaabane, 2005;Sathye, 2003;Wanniarachchige, 2011).Governmental banks have superior advantage in attracting customer deposits at lower costs compared to the private counterparts, accordingly they have more credits transactions, investments and projects in different regions that are not reachable by their counterparts.…”

Section: Asian Journal Of Finance and Accountingsupporting

confidence: 89%

“…The regression results reveal a statistically significant positive association between foreign ownership and BSC index while domestic private ownership shows a statistically significant negative effect on the BSC index. In contrary with the social welfare theory and the political theory, government ownership has a statistically significant positive effect on the BSC index (Loukil and Chaabane, 2005;Sathye, 2003;Wanniarachchige, 2011).…”

Section: Resultsmentioning

confidence: 80%

“…They refer the good performance of public banks to the social benefits they receive in comparison with their private counterparts. Sathye (2003) study the effect of ownership structure on bank productive efficiency in India during the period from 1997 to 1998. Using Data Envelopment Analysis (DEA), the results indicate that state owned banks outperform privately owned banks particularly during the expansionary phase when the fixed costs of privately owned banks are high.…”

Section: Government Ownershipmentioning

confidence: 99%

See 4 more Smart Citations

Does Ownership Structure Matter for Bank Performance in the MENA Region? An Empirical Evidence

Fathi

ElBannan

2017

AJFA

View full text Add to dashboard Cite

The aim of this study is to examine the effect of bank ownership structure on bank performance in Middle East and North Africa (MENA) region using the balanced scorecard (BSC) method. Usinga panel data of 137 commercial banks during the period from 2010 to 2014 across twelve countries in the MENA region, the study highlights the effect of ownership type and concentration on bank performance using the balanced scorecard as a performance measurement technique. The results show that government ownership and foreign ownership have statistically significant positive effect on bank performance measured by BSC index. On the contrary, domestic private ownership and ownership concentration have statistically significant negative effect on bank's BSC index. Additional analysis on each of the BSC perspective separately reveals that ownership concentration is negatively correlated with the customer and learning and growth factors, while positively correlated with the internal process factor. Government ownership shows statistically significant negative effect on the financial factor and the internal process factor while associated with statistically significant positive effect on the customer factor. Foreign ownership has statistically significant positive effect on the financial and the internal process factor but does not have statistically significant effect on the other two perspectives. Finally, Domestic private ownership reveals a statistically significant negative effect on the learning and growth factor.

show abstract

Section: Asian Journal Of Finance and Accountingsupporting

confidence: 93%

Section: Asian Journal Of Finance and Accountingsupporting

confidence: 91%

Section: Asian Journal Of Finance and Accountingsupporting

confidence: 89%

Section: Resultsmentioning

confidence: 80%

Section: Government Ownershipmentioning

confidence: 99%

See 3 more Smart Citations

Does Ownership Structure Matter for Bank Performance in the MENA Region? An Empirical Evidence

Fathi

ElBannan

2017

AJFA

View full text Add to dashboard Cite

show abstract

An exploration of operational efficiency, market efficiency, and sustainable development in the banking industry

Chen,

Lin,

Chiu

et al. 2024

Corp Soc Responsibility Env

View full text Add to dashboard Cite

Sustainable development is the primary goal of the current global economic transformation. The banking industry, as an intermediary institution within the financial system, not only serves as a crucial foundation for national economic development but also plays a key role in the global transition to sustainability and a low‐carbon economy. Banks can leverage the influence of financing to direct funds towards sustainable ventures and simultaneously develop green financial products, guiding ordinary consumers to make more environmentally friendly choices. How the banking industry can effectively improve operational efficiency while considering sustainable development is one of the key focuses of ongoing development in the banking sector. The main aim of this study is to incorporate the aspect of sustainable development into the evaluation of operational efficiency, aligning with the goals of corporate sustainable development. It allows for an analysis of how decision‐makers in the banking industry can adjust resources to maintain stable and sustainable profitability while promoting sustainable development. This study selected 13 financial holding banks and 19 non‐financial holding banks in Taiwan as research subjects, covering the period from 2016 to 2021. Utilizing a meta assurance regions (AR) parallel dynamic two‐stage slacks‐based measure model with “operational stage” and “market and sustainability parallel stage,” the research explores the efficiency performance of banks considering sustainable development. It examines the differences in efficiency performance at various stages among different types of banks. The research findings are as follows: (1) among the banking industry in Taiwan, operational stage efficiency ranks the highest, followed by sustainable stage efficiency, while market stage performance lags behind. (2) Financial holding banks outperform non‐financial holding banks on average in operational stage, market stage, and sustainable stage efficiency. (3) Fubon Financial, TFH, CATHAY HOLDINGS, and SKFH are benchmark performers among financial holding banks. (4) Non‐financial holding banks exhibit a higher average technical gap ratio compared to financial holding banks, indicating that non‐financial holding banks have fewer inefficient areas to improve. However, the technical efficiency of both groups of banks approaches each other over the years. (5) In the sustainable stage, financial holding banks demonstrate superior environmental indicators and corporate treatment efficiency compared to non‐financial holding banks.

show abstract

Efficiency and productivity analysis of Pakistan's banking industry: ADEAapproach

et al. 2020

View full text Add to dashboard Cite

The objective of this study is to investigate operational efficiency, productivity, and associated differences between the operational efficiency and productivity of Pakistan's private, public, and foreign banks over the period 2006-2017. To measure the operational efficiency scores and productivity growth change, we used data envelopment analysis (DEA) and Malmquist productivity index (MPI) simultaneously. Kruskal-Wallis test was used to check the significant differences between the mean technical efficiencies of different commercial banking industries of Pakistan. Empirical results revealed that mean technical and pure technical efficiency scores of foreign banks are better than domestic banks; however, the mean scale efficiency score of domestic banking is relatively better than foreign banks. Further public sector banks performed well than the private banking industry during the period 2006-2017. Kruskal-Wallis test demonstrated a significant difference between the mean technical efficiency scores of three different banking sectors (public, private, and foreign) of the Pakistan commercial banking industry. Moreover, the MPI results indicated that there is (1.9%) decline in mean total factor productivity change for all commercial banks during the sample period. Further, total factor productivity change of foreign commercial banks shows growth, while a decaying trend is observed for domestic commercial banks.

show abstract

Efficiency of banks in a developing economy: The case of India

Cited by 325 publications

References 16 publications

Does Ownership Structure Matter for Bank Performance in the MENA Region? An Empirical Evidence

Does Ownership Structure Matter for Bank Performance in the MENA Region? An Empirical Evidence

An exploration of operational efficiency, market efficiency, and sustainable development in the banking industry

Efficiency and productivity analysis of Pakistan's banking industry: ADEAapproach

Contact Info

Product

Resources

About