Financial sector liberalization, bank privatization, and efficiency: Evidence from Pakistan

Patti, Emilia Bonaccorsi di; Hardy, Daniel

doi:10.1016/j.jbankfin.2005.03.019

Cited by 128 publications

(28 citation statements)

References 28 publications

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“…In empirical studies, however, the ownership structure does not appear to be neutral in terms of changes in efficiency and productivity following financial reforms. While deregulation seems to increase efficiency for all banks, it does not result in inter-ownership convergence (Bonaccorsi di Patti and Hardy, 2005). The entry of foreign banks can have an overall negative effect on the efficiency of the sector, although this is mitigated by good corporate governance (Lensink et al, 2008).…”

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confidence: 99%

The impact of regulatory reforms on cost structure, ownership and competition in Indian banking

Zhao

Casu

Ferrari

2010

Journal of Banking & Finance

135

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This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent repository link AbstractThis paper evaluates the impact of financial sector reforms on the cost structure characteristics and on the ownership-cost efficiency relationship in Indian banking. It also examines the impact of reforms on the dynamics of competition in the lending market. We find evidence that deregulation improves banks performance and fosters competition in the lending market. Results suggest technological progress, once Indian commercial banks have adjusted to the new regulatory environment. This, however, does not translate in efficiency gains. There is also evidence of an ownership effect on the level and pattern of efficiency change. Finally, competition keeps building pace even in the re-regulation period and technological improvements are not hampered by the tightening of prudential norms.

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confidence: 99%

The impact of regulatory reforms on cost structure, ownership and competition in Indian banking

Zhao

Casu

Ferrari

2010

Journal of Banking & Finance

135

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“…Bank output quality 1 (Fries and Taci 2005) or equity capital (Carvallo and Kasman 2005;Bos and Schmiedel 2007;Fitzpatrick and McQuinn 2008) has always before been treated as fully exogenous in the frontier estimation, although some studies have treated equity (Maudos et al 2002;Williams and Nguyen 2005;Kasman and Yildirim 2006) and even both loan quality and equity (Alshammari 2003) as ''netputs''. 2 However, we would argue that even conventional banks employ equity capital as an input in addition to funds from deposits and inter-bank borrowings to finance their operations (Bonaccorsi di Patti and Hardy 2005). Moreover, Islamic banks that apply the equity participation principle also depend significantly on equity as a source of funds (Metwally 1997).…”

Section: Review Of the Literature And The Modelling Approachmentioning

confidence: 99%

“…7 Some studies have treated equity capital as a netput in the translog function(Berger and Mester 1997;Hasan and Marton 2003;Bonaccorsi di Patti and Hardy 2005;Kraft et al 2006).…”

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Efficiency in Islamic and conventional banking: an international comparison

2009

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“…1 Boehmer et al (2005), Bonin et al (2005), Otchere (2005), and Williams and Nguyen (2005) are examples of cross-country studies. Some studies focusing on individual countries are, among others, Berger et al (2005) for Argentina, Beck et al (2005a) for Brazil, Beck et al (2005b) for Nigeria, Haber (2005) for Mexico, and Bonaccorsi di Patti and Hardy (2005) for Pakistan. Megginson (2005) and Clarke et al (2005) provide comprehensive surveys about bank privatization studies.…”

Section: Introductionmentioning

confidence: 99%