Research on the Efficiency of Chinese Commercial Banks Based on Undesirable Output and Super-SBM DEA Model

Zhou, Lujun; Zhu, Shiyi

doi:10.4236/jmf.2017.71006

Cited by 13 publications

(13 citation statements)

References 23 publications

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“…Although many previous studies have assessed banking performance by considering undesirable outputs (such as non-performing loans; see, for example, Huang et al [ 2 ], Park et al [ 12 ], Zha et al [ 22 ], Fukuyama and Weber [ 37 ] and Fukuyama et al [ 38 ]) and super efficiency (Khodabakhshi et al [ 13 ], Andersen et al [ 39 ], Chiu et al [ 40 ], Chen [ 41 ], Minh et al [ 42 ], Avkiran et al [ 43 ] and Zhou et al [ 44 ]) either separately or simultaneously [ 2 ], these models do not consider both super efficiency and heterogeneous factors, while they assume that banks share a common production frontier. Actually, the production sets of different banks may differ due to differences in physical and capital stocks, as well as the social and economic infrastructure in which the production occurs [ 45 ].…”

Section: Introductionmentioning

confidence: 99%

Evaluation and evolution of bank efficiency considering heterogeneity technology: An empirical study from China

Yin

Huang

2018

PLoS ONE

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The performances of different types of banks may vary due to heterogeneous technology, which can be examined by metafrontier analysis. However, the metafrontier constructed in most existing literature is concave, resulting in a biased estimation of efficiency. Based on 93 Chinese commercial banks over the period of 2005–2016, we first evaluate the banking efficiency by using the proposed data envelopment analysis (DEA) model, NCMeta-US-NSBM, which simultaneously incorporates a non-concave metafrontier technique, undesirable outputs, and super efficiency into a network slacks-based measure (NSBM) model. Subsequently, the evolution of banking efficiency during the study period is investigated on the basis of the Dagum Gini index and kernel density estimation methods. The main empirical results show the following. 1) There exists significant disparity/heterogeneity in banking efficiency for overall efficiency, productivity efficiency, and profitability efficiency. 2) The results of the technology gap ratio (TGR) and the evaluation of stated-owned banks (SOB), joint-stock banks (JSB), and city commercial banks (CCB) in the productivity stage are higher than those in the profitability stage, indicating that most of the banks have a large space for improvement, especially for SOB and JSB in the profitability stage. 3) The major contribution of the overall difference of banking efficiency in China is the intensity of the transvariation. 4) Although the kernel density estimations for different efficiency scores have similar distributions in corresponding years, the multilevel differentiation phenomenon of banking efficiency may appear after 2008.

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Section: Introductionmentioning

confidence: 99%

Evaluation and evolution of bank efficiency considering heterogeneity technology: An empirical study from China

Yin

Huang

2018

PLoS ONE

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“…Some scholars considered undesirable outputs (non-performing loans) to evaluate the banking performance, for instance [ 33 ]; [ 43 ] and [ 55 , 56 ]. Simultaneously, [ 34 ] and [ 57 – 62 ], followed the super-efficiency model in data envelopment analysis. However, heterogeneous factors are ignored while evaluating the baking performance.…”

Section: Literature Reviewmentioning

confidence: 99%

A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach

et al. 2022

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South Asia primarily consists of developing economies with diverse financial systems. The commercial banking industry plays a crucial role in each country’s financial development in the region. This research aims to evaluate commercial banking industries’ efficiency and productivity growth in the South Asian (SA) region over 6 years (2013–2018). In addition, the technology gap among the banking industries of all countries is also explored. Data envelopment analysis (DEA) Meta-frontier is employed to measure the technical efficiency (TE) and technology gap ratio (TGR) among the countries. Further Malmquist productivity index (MPI) is used for productivity change estimation. Results indicate that, on average, 147 commercial banks (CBs) have a technical efficiency score of 0.6208, while CBs in Nepal are the most efficient in the region with an average score of 0.7153. The Meta frontier analysis also confirms the presence of different production technologies in CBs. Nepal’s CBs group frontier is closer to meta-frontier (technology gap ratio, TGR = 0.9361) While, Bangladesh, Pakistan, India, and Sri Lanka rank second, third, fourth, and fifth, respectively. The results of productivity contend that the total factor productivity change of all 147 CBs decreases by 0.8 percent on average over the study period. CBs have enhanced their productivity growth in Sri Lanka, Nepal, and Pakistan, but declining trends have been witnessed in Indian and Bangladesh’s commercial banking industries.

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“…If   =1, the eco-efficiency of DMU0 is said to be efficient, and PTE and SE are also efficient. If   <1, the DMU0 is considered to be inefficient, and PTE or SE is inefficient but can be improved by deleting the excess in bad outputs and augmenting the shortfalls in good outputs via the SBM-projection [41]. In this study, the agri-…”

Section: Dea-sbmmentioning

confidence: 99%

Spatio-temporal Evolution and Improvement Potential of Agricultural Eco-efficiency in Jiangsu Province

Li¹,

Hu²,

Jin³

2021

Preprint

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Achieving eco-efficiency in agriculture production at low environmental costs is key to sustainable agriculture. Using the DEA-SBM model, this study evaluated the agricultural eco-efficiency of the 77 counties and districts in China’s Jiangsu province from 1999 to 2018 and analyzed its spatio-temporal evolution pattern and influencing factors. The mains conclusions were as follows: (1) The overall agricultural eco-efficiency and its decomposition terms, pure technology efficiency and scale efficiency, exhibited a fluctuating downward trend. The regional inequality in agricultural eco-efficiency had been widening and exhibited a strong positive spatial association. (2) The agricultural eco-efficiency in Jiangsu province presented a “high south and low north” spatial pattern. High-level agricultural eco-efficiency areas were in the Taihu Plain in Sunan, while low-level agricultural eco-efficiency zones are distributed across Subei City. The High-High-type spatial association pattern is concentrated in the Suzhou-Wuxi-Changzhou region, while the Low-Low areas are mainly in the coastal regions of Subei and Suzhong. (3) The spatial pattern of PTE and SE generally exhibited a “high south and low north” distribution. Areas with positive growth in agricultural eco-efficiency, PTE, and SE, were situated in Xuzhou, Nanjing city, and the bordering regions between Yangzhou and Huai’an, and Changzhou and Wuxi. (4) The excessive redundant use and application of pesticides, chemical fertilizer, agricultural diesel, labor, land, and agricultural carbon emission have been the primary factor affecting Jiangsu's agricultural eco-efficiency. Irrigation had also signficantly impacted agricultural eco-efficiency, while mechanical power and agricultural film had minimal effect. The majority of counties and districts in Subei, Suzhong, and Ningzhen Yang Hilly region have issues regarding their excessive usage of chemical fertilizer, pesticide, chemical fertilizer, agricultural diesel, labor, and land. The findings of this study can contribute towards a better understanding of agricultural eco-efficiency and spatial association effect and can help policymakers increase agricultural eco-efficiency.

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Research on the Efficiency of Chinese Commercial Banks Based on Undesirable Output and Super-SBM DEA Model

Cited by 13 publications

References 23 publications

Evaluation and evolution of bank efficiency considering heterogeneity technology: An empirical study from China

Evaluation and evolution of bank efficiency considering heterogeneity technology: An empirical study from China

A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach

Spatio-temporal Evolution and Improvement Potential of Agricultural Eco-efficiency in Jiangsu Province

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