Evaluating the productive efficiency and performance of US commercial banks

Barr, Ronald E.; Killgo, Kory A.; Siems, Thomas F.; Zimmel, Sheri

doi:10.1108/03074350210767988

Cited by 133 publications

(75 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The finding is consistent with earlier findings by among others, Kwan and Eisenbeis (1995), Resti (1997) and Barr et al (2002) have found a negative relationship between problem loans and banks efficiency. Furthermore, most research conducted on explaining the causes of bank or thrift industry failures have found that failing institutions carried a large proportion of non-performing loans in their books prior to failure (Dermiguc-Kunt, 1989;Whalen, 1991;Barr and Siems, 1994).…”

Section: The Determinants Of Malaysian Islamic Banks Efficiencysupporting

confidence: 83%

Bank Ownership, Characteristics, and Performance:A Comparative Analysis of Domestic and Foreign Islamic Banks in Malaysia

Sufian¹,

Zulkhibri²

2008

islec

View full text Add to dashboard Cite

Today, the Malaysia Islamic banking system is becoming an effective means of financial intermediation reflected by its extensive distribution networks comprising 152-full-fledgedIslamic banking branches and more than 2,000 Islamic banking counters. The ability of the Islamic banking institutions to arrange and offer products with attractive and innovative features at prices that are competitive with conventional products, has appealed both the Muslim and nonMuslim customers. This has spurred the efforts by other non-bank financial intermediaries such as the development financial institutions, savings institutions and housing credit institutions to introduce Islamic banking schemes and instruments to meet their customer demands.Throughout the years, Islamic banking in Malaysia has gained significance, and has been on a progressive upward trend. Since 2000, the Islamic banking industry has been growing at an Constructing a separate frontier for each of the years under study is a critical issue in a dynamic business environment because a bank may be the most efficient in one year but may not be in the 5 following year. In the Malaysian context, it becomes more important, as there is an ongoing liberalisation in the banking sector over the estimation period. A separate frontier will highlight any significant changes taking place in the sector that are induced by Bank Negara Malaysia"s (BNM) supervisory policies.As Malaysia is currently vying for recognition as the capital or hub of Islamic banking worldwide, the government has taken measures, among others, to further liberalise the sector.The strategy is to create more competition, to tap new growth opportunities, and to raise the Furthermore, the paper explores the proximate sources of (in) efficiency under both univariate This paper unfolds as follows. Section 2 provides an overview of the related studies in the literature, followed by a section that outlines the method used and choice of input and output variables for the efficiency model. Section 4 reports the empirical findings. Section 5 concludes and offers avenues for future research. REVIEW OF THE RELATED LITERATUREWhile there has been extensive literature examining the efficiency features of U.S. andEuropean banking markets over recent years, the work on Islamic banking is still in its infancy.Typically, studies on Islamic bank efficiency have focused on theoretical issues and the empirical work has relied mainly on the analysis of descriptive statistics rather than rigorous statistical estimation (El-Gamal and Inanoglu, 2005). However, this is gradually changing as a number of recent studies have sought to apply the approaches outlined above to estimate bank efficiency using various frontier techniques. sharing. Despite that, the bank was found to perform better compared to its conventional counterparts in terms of liquidity and risk measurement (lower risks). METHODOLOGY Data Envelopment AnalysisThe present study employs the non-parametric frontier DEA approach to estimate the The analysis under ...

show abstract

Section: The Determinants Of Malaysian Islamic Banks Efficiencysupporting

confidence: 83%

Bank Ownership, Characteristics, and Performance:A Comparative Analysis of Domestic and Foreign Islamic Banks in Malaysia

Sufian¹,

Zulkhibri²

2008

islec

View full text Add to dashboard Cite

show abstract

“…Many studies have used CAMELS rating system to analyze the performance of financial institutions and found the system quite useful in terms of judging their financial conditions. For example, Barr et al (2002) argued that "CAMEL rating has become a necessary evaluating instrument for regulators".…”

Section: Literaturementioning

confidence: 99%

Performance Analysis Of Banks In Turkey Using Camels Approach Case Study: Six Turkish Banks During 2005 To 2016

Ghazavi¹,

Bayraktar²

2018

isarder

View full text Add to dashboard Cite

This study analyzes the performance and financial credibility of six Turkish banks for the period of [2005][2006][2007][2008][2009][2010][2011][2012][2013][2014][2015][2016]. The sample comprises two state-owned deposit banks, three private-owned deposit banks, and one foreign bank. As one of the most popular methods for measuring banking performance, CAMELS method is used to analyze the performance of the banks. CAMELS stands for Capital Adequacy, Asset Quality, Management Efficiency, Earning Quality, Liquidity, Sensitivity respectively. When the average rates of 2014, 2015 and 2016 ratios -for each one of these mentioned categories-separately examined, none of the banks is found to be superior to the others. As for the composite rate for CAMELS though, Ziraat Bank has the highest rate (29.32%) and Halkbank stands at the last row (21.94%). Overall, the values of the CAMELS ratios for 2016 seem to be quite close to each other. However, when the yearly analysis is conducted, some significant differences in the categories of CAMELS ratio are observed. In addition, ANOVA test results state that the means of CAMELS ratios are significantly different over the years. Finally, comparison of CAMELS ratings with institutional ratings shows that the latter does lag the financial indicators of the companies and even can be not reflective of the current financial condition of the company. On the other hand, the trends of the institutional ratings and of financial indicators are consistent over a long period of time.

show abstract

“…A study conducted by Barr et al (2010) viewed that CAMEL rating criteria has become a concise and indispensable tool for examiner's and regulators. This rating criteria ensures a bank's healthy conditions by reviewing different aspects of a bank based on variety of information sources such as financial statement, funding sources, macroeconomics data, budget and cash flow.…”

Section: Literature Reviewmentioning

confidence: 99%

Comparative Performance Evaluation of Selected Commercial Banks in India using CAMELS Rating Model

Samuel¹

2018

IJGS

View full text Add to dashboard Cite

Sound financial health of a bank is the guarantee not only to its depositors but is equally significant for the shareholders, employees and whole economy as well. As sequel to this maxim, efforts have been made from time to time to measure the financial position of each bank and manage it efficiently and effectively.Indian banking sector widely includes commercial, nationalized, co-operative, private and international banks in its fold. In the present study an attempt is made to evaluate the financial performance of three major commercial banks (IOB, Canara Bank and Syndicate Bank) using CAMELS Rating Model. CAMELS rating model is basically an approach widely used to measure the performance of banking unit inside and outside India. This model measures the performance of banks from all important parameters like Capital adequacy, Asset quality, Management efficiency, Earning quality, Liquidity and sensitivity to market. The study is based on secondary data drawn from the annual reports. For the purpose of evaluation the data's of five years (2011-2016) before demonetization are analyzed by calculating the 17 ratios related to CAMELS rating model. It is found out that according to Basel Norm the overall state of capital adequacy of all the three banks are satisfactory. As far as loan portfolio is concern, the overall state of asset quality and management efficiency are satisfactory, whereas the earning capacity of the banks is not and the liquidity is also not satisfactory. The high level of NPAs and sluggishness in the domestic growth, slow recovery in the global economy and the continuing uncertainty in the global market leading to lower International Journal of Global Sustainability ISSN 1937-7924 2018 exports and imports are one of the main reasons for the low earning capacity of banks along with these reasons RBI's new rules to make higher provisioning for substandard assets also affected the earning capacity of all the three banks. Based on the evaluations all the three commercial banks should improve its earning capacity and the liquidity position to perform efficiently and effectively.

show abstract

Evaluating the productive efficiency and performance of US commercial banks

Cited by 133 publications

References 22 publications

Bank Ownership, Characteristics, and Performance:A Comparative Analysis of Domestic and Foreign Islamic Banks in Malaysia

Bank Ownership, Characteristics, and Performance:A Comparative Analysis of Domestic and Foreign Islamic Banks in Malaysia

Performance Analysis Of Banks In Turkey Using Camels Approach Case Study: Six Turkish Banks During 2005 To 2016

Comparative Performance Evaluation of Selected Commercial Banks in India using CAMELS Rating Model

Contact Info

Product

Resources

About