The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking

This paper examines the cost efficiency of banks operating in selected countries of the Association of Southeast Asian Nations (ASEAN). We calculate the cost efficiency base on accounting efficiency and economic efficiency using Stochastic Frontier Analysis (SFA) and then classify it as efficient...

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Main Authors:	Abdul Mongid, Muazaroh Muazaroh
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:	http://journalarticle.ukm.my/11248/ http://journalarticle.ukm.my/11248/ http://journalarticle.ukm.my/11248/1/jeko_51%281%29-10.pdf

id	ukm-11248
recordtype	eprints
spelling	ukm-112482018-01-13T23:26:54Z http://journalarticle.ukm.my/11248/ The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking Abdul Mongid, Muazaroh Muazaroh, This paper examines the cost efficiency of banks operating in selected countries of the Association of Southeast Asian Nations (ASEAN). We calculate the cost efficiency base on accounting efficiency and economic efficiency using Stochastic Frontier Analysis (SFA) and then classify it as efficient and not. Further, bank specific and economic variables are combined to determine the cost efficiency and the efficiency category (efficiency dummy) using linear regression and logistic regression. The results show that bank efficiency determined by asset size, dummy of economic crisis, interest rate gap, economic growth, inflation, capital, earning assets and loan losses provision. Only capital, earning asset and loan loss provision are consistent for accounting and economic efficiencies. For economic variable, economic growth and inflation rate are only significant in the accounting efficiency. The result implied that ASEAN banking should continue to consolidate the asset size and the authority should create high economic growth and a low inflation environment to make their banking industry more efficient. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11248/1/jeko_51%281%29-10.pdf Abdul Mongid, and Muazaroh Muazaroh, (2017) The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking. Jurnal Ekonomi Malaysia, 51 (1). pp. 119-131. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2017.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This paper examines the cost efficiency of banks operating in selected countries of the Association of Southeast Asian Nations (ASEAN). We calculate the cost efficiency base on accounting efficiency and economic efficiency using Stochastic Frontier Analysis (SFA) and then classify it as efficient and not. Further, bank specific and economic variables are combined to determine the cost efficiency and the efficiency category (efficiency dummy) using linear regression and logistic regression. The results show that bank efficiency determined by asset size, dummy of economic crisis, interest rate gap, economic growth, inflation, capital, earning assets and loan losses provision. Only capital, earning asset and loan loss provision are consistent for accounting and economic efficiencies. For economic variable, economic growth and inflation rate are only significant in the accounting efficiency. The result implied that ASEAN banking should continue to consolidate the asset size and the authority should create high economic growth and a low inflation environment to make their banking industry more efficient.
format	Article
author	Abdul Mongid, Muazaroh Muazaroh,
spellingShingle	Abdul Mongid, Muazaroh Muazaroh, The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking
author_facet	Abdul Mongid, Muazaroh Muazaroh,
author_sort	Abdul Mongid,
title	The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking
title_short	The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking
title_full	The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking
title_fullStr	The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking
title_full_unstemmed	The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking
title_sort	efficiency and inefficiency of the banking sectors: evidence from selected asean banking
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2017
url	http://journalarticle.ukm.my/11248/ http://journalarticle.ukm.my/11248/ http://journalarticle.ukm.my/11248/1/jeko_51%281%29-10.pdf
first_indexed	2023-09-18T19:59:47Z
last_indexed	2023-09-18T19:59:47Z
_version_	1777406770752258048

The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking

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