Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector

Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector

This paper examines the efficiency of the Thai banking sector from 1999 to 2008 by using the data envelopment analysis (DEA) method. The results indicate that inefficiency in the sector stems mainly from scale rather than pure technical efficiencies. The findings suggest that small banks are most ef...

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Main Authors: Sufian, Fadzlan, Habibullah, Muzafar Shah
Format: Article
Language:English
Published: Sage Publications 2010
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/5186/
http://irep.iium.edu.my/5186/
http://irep.iium.edu.my/5186/
http://irep.iium.edu.my/5186/1/427.full.pdf
id iium-5186
recordtype eprints
spelling iium-51862012-01-27T04:40:21Z http://irep.iium.edu.my/5186/ Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking This paper examines the efficiency of the Thai banking sector from 1999 to 2008 by using the data envelopment analysis (DEA) method. The results indicate that inefficiency in the sector stems mainly from scale rather than pure technical efficiencies. The findings suggest that small banks are most efficient, while medium-sized banks have been the least efficient banking group. Domestic banks have been relatively more efficient than their foreign bank peers, which can be attributed largely to a higher pure technical efficiency (PTE) level. The results from the multivariate regression analysis suggest that banks with higher loans intensity and which are relatively better capitalised tend to exhibit higher efficiency levels. On the other hand, credit risk is negatively related to bank efficiency. The empirical findings suggest that the recent global financial crisis exerts a negative impact on the efficiency of Thai banks. Sage Publications 2010-11 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5186/1/427.full.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2010) Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector. Margin—The Journal of Applied Economic Research, 4 (4). pp. 427-461. ISSN 0973-8010 (print), 0973-8029(online) http://mar.sagepub.com/ DOI:10.1177/097380101000400403
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Sufian, Fadzlan
Habibullah, Muzafar Shah
Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector
description This paper examines the efficiency of the Thai banking sector from 1999 to 2008 by using the data envelopment analysis (DEA) method. The results indicate that inefficiency in the sector stems mainly from scale rather than pure technical efficiencies. The findings suggest that small banks are most efficient, while medium-sized banks have been the least efficient banking group. Domestic banks have been relatively more efficient than their foreign bank peers, which can be attributed largely to a higher pure technical efficiency (PTE) level. The results from the multivariate regression analysis suggest that banks with higher loans intensity and which are relatively better capitalised tend to exhibit higher efficiency levels. On the other hand, credit risk is negatively related to bank efficiency. The empirical findings suggest that the recent global financial crisis exerts a negative impact on the efficiency of Thai banks.
format Article
author Sufian, Fadzlan
Habibullah, Muzafar Shah
author_facet Sufian, Fadzlan
Habibullah, Muzafar Shah
author_sort Sufian, Fadzlan
title Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector
title_short Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector
title_full Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector
title_fullStr Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector
title_full_unstemmed Bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the Thai banking sector
title_sort bank-specific, industry-specific and macroeconomic determinants of bank efficiency: empirical evidence from the thai banking sector
publisher Sage Publications
publishDate 2010
url http://irep.iium.edu.my/5186/
http://irep.iium.edu.my/5186/
http://irep.iium.edu.my/5186/
http://irep.iium.edu.my/5186/1/427.full.pdf
first_indexed 2023-09-18T20:13:40Z
last_indexed 2023-09-18T20:13:40Z
_version_ 1777407644177268736

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