How efficient is the banking system of Asia’s next economic dragon? Evidence from rolling DEA windows

Nguyen, Thanh; Roca, Eduardo; Sharma, Parmendra

doi:10.1080/00036846.2014.909578

Cited by 30 publications

(25 citation statements)

References 41 publications

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“…Following Fiordelisi et al (2011), Deelchand and Padgett (2010), Nguyen et al (2014) and Gardener et al (2011), this study adopts the intermediation approach taken by Sealey and Lindley (1977) to measure the efficiency of banks. In particular, this study specifies that banks use three inputs (deposits, physical capital and personnel) to produce two outputs, namely loans ( 1 ) and other earning assets ( 2 ).…”

Section: B) Efficiency Estimationmentioning

confidence: 99%

“…In constrast,Meslier et al (2014) revealed that revenue diversification was associated with increased profits, and this benefit was greater for foreign banks compared to their domestic counterparts in the Philippines from 1999 to 2005.There are several studies into the performance of Vietnamese banks, including those byNguyen et al (2016),Nguyen et al (2014),Vu and Nahm (2013), andVu and Turnell (2010), but these studies focus only on estimating the efficiency and its determinants, of Vietnamese banks. In particular,Nguyen et al (2016) compared the cost efficiency of Vietnamese banks with that of Chinese and Indian banks, and found that Vietnamese banks are the least cost efficient, followed by Chinese banks and Indian banks Nguyen et al (2014). analysed the cost and profit efficiency of the Vietnamese banking sector over the period 1995 to 2011 taking into account the Asian and Global Financial crises.…”

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confidence: 99%

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Management Behaviour in Vietnamese Commercial Banks

Nguyen

Nghiem

Roca

2016

Australian Economic Papers

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This study identifies managerial behaviour in Vietnamese banks between the years 2000 and 2014, based on the managerial framework of banks, as identified by Rossi et al. (2009). This framework is built on the interrelationships between efficiency, risk, capital and diversification. This study uses the Z-score to measure insolvency risk, the SFA to estimate cost efficiency, the ratio of total equity to total assets to capture bank capital, and the HHI index to measure the diversification of revenue and earning assets. The results from the 3SLS estimator indicate that revenue diversification has an insignificant impact on insolvency risk, capital ratio and cost efficiency, but earning assets diversification has a negative effect on these three variables, supporting "classical diversification", "economic capital" and "monitoring" behaviours. Moreover, a decline in cost efficiency leads to a rise in insolvency risk, implying "bad management" behaviour; an increase in risk results in a reduction in cost efficiency, indicating "bad luck" behaviour; and a reduction in capital ratio in the poorly capitalized banks leads to a growth in risk, suggesting "moral hazard" behaviour. The results remain strongly robust when using an alternative risk measurement (the loan loss provision ratio) and an alternative SFA model.

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Section: B) Efficiency Estimationmentioning

confidence: 99%

mentioning

confidence: 99%

Management Behaviour in Vietnamese Commercial Banks

Nguyen

Nghiem

Roca

2016

Australian Economic Papers

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“…We interpret this slower pace in light of the entry of new banks and foreign banks in particular, whose superior technological and management skills can take time to spill-over to the sector. Finally, higher levels of concentration also have a cost Nguyen et al (2014) and Nguyen et al (2016). The early sustained growth is reflective of the country first abandoning the mono-tier banking system and beginning proper commercial banking.…”

Section: Estimation Resultsmentioning

confidence: 99%

“…The papers that use the deterministic non parametric technique of Data Envelopment Analysis generally find an improvement over time in efficiency, often helped by a larger size, and have mixed results when it comes to the relative performance of different ownership structures (see for exampleNguyen et al (2013);Nguyen et al (2014),Vu and Nahm (2013); andStewart et al (2016). The first paper to adopt a parametric, stochastic approach is Vu and Turnell (2010) who analyse cost efficiency over the period 2000-2006 estimating a Bayesian stochastic frontier.…”

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confidence: 99%

Banking, transition and financial reforms: a long-term analysis of Vietnam

Ferrari

Tran

2020

J Bank Regul

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We analyse the effectiveness of financial reforms in the transition economy of Vietnam, from the early years until the present day. Our focus is on the changes and the determinants of banks cost efficiency, which was widely criticised and was the focus of the reforms package. We find that regulatory changes impact favourably the development of the sector. Technological and efficiency improvements characterise the period of analysis, helped by better capitalization and increased diversification. Any technological spill-overs from foreign banks are quickly transferred to the domestic market, and larger domestic banks rapidly become the best performing institutions, in support of the more recent liberalization and privatization policies.

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“…16 APEC countries have reached the conclusion that fossil fuels are still an important part of energy consumption. Nguyen et al (2014) used the 1995-2011 period dataset to examine profit efficiency and cost trends in the Vietnam banking sector through DEA-window analysis. Empirical findings indicate that state banks are more efficient than private banks.…”

Section: Almentioning

confidence: 99%

Determination of the Efficiencies of Textile Firms Listed in Borsa İstanbul by Using DEA-Window Analysis

2019

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Global competition enables countries' advantageous sectors to stand out as an indicator of their economic power. The importance of these sectors may vary by country or the time period they operate in. The textile industry is one of the sectors that significantly contributes to Turkey's economic growth. Thus, it is important to monitor the financial activities of the firms in the textile sector as a performance indicator since it is evident that the financial efficiency of each company will contribute positively to the overall efficiency of the whole sector. In this study, the financial activities of 19 firms in the textile sector being traded on Borsa Istanbul (BIST) for the period 2008-2017 are examined. For efficiency analysis, DEA (Data Envelopment Analysis) -Window Analysis method was applied by using financial indicators of these companies. It was observed that the highest average efficiency value of the companies was realized in 2017 with 94.09%. The average activity levels in other years were found to be in the range of 60%-90%. In the empirical analysis, the efficiency values of the top five companies were determined to be at the level of 90%-100%. DESA has achieved the most successful performance in average efficiencies with a score of 98.04 when the whole period is considered. SÖNMEZ and MENDERES firms have taken the second and the third places with scores of 97.40 and 94.74, respectively. The close performances of the top three firms were also observed in three-years windows. However, in the three-year window analysis, SÖNMEZ ranked the first, DESA ranked the second and MENDERES ranked the third according to their average scores. One of the reasons for this small difference between the rankings is that, firstly, the firms' performances have been very close to each other, and secondly the effect of the low score (76.11) obtained by SÖNMEZ in 2008 has been diminished for the firm in the three-year window analysis. KARSU occupied the last place with the lowest average efficiency score in both rankings.

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How efficient is the banking system of Asia’s next economic dragon? Evidence from rolling DEA windows

Cited by 30 publications

References 41 publications

Management Behaviour in Vietnamese Commercial Banks

Management Behaviour in Vietnamese Commercial Banks

Banking, transition and financial reforms: a long-term analysis of Vietnam

Determination of the Efficiencies of Textile Firms Listed in Borsa İstanbul by Using DEA-Window Analysis

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