TITLE

The Relative Efficiency of Commercial Banks in Thailand: DEA Approach

AUTHOR(S)
Chansarn, Supachet
PUB. DATE
August 2008
SOURCE
International Research Journal of Finance & Economics;2008, Issue 18, p53
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This study aims to examine the relative efficiency of Thai commercial banks during 2003 � 2006 by utilizing Data Envelopment Analysis (DEA). Based on the sample of 13 commercial banks, our findings reveal that the efficiency of Thai commercial banks via operation approach is very high and stable while the efficiency via intermediation approach is moderately high and somewhat volatile. In term of size, large, medium and small banks, in average, are efficient via operation approach with the average efficiencies of 100%. However, small banks are the most efficient banks via intermediation approach. In addition, incumbents which are commercial banks originally competing in banking business and new entries which are commercial banks previously competing in finance and securities business are also efficient via operation approach with the average efficiencies of 100%. Nevertheless, incumbents, in average, are more efficient than new entries in perspective of intermediation approach.
ACCESSION #
34598611

 

Related Articles

  • The use of DEA in measuring efficiency in Arabian banking. Al-Jarrah, Idries Moh'd // Banks & Bank Systems;2007, Vol. 2 Issue 4, p21 

    The Data Envelopment Analysis Analysis (DEA) approach is used to investigate the cost efficiency levels of banks operating in Jordan, Egypt, Saudi Arabia and Bahrain over 1992-2000. The estimated cost efficiency is further decomposed into technical and allocative efficiency at both variable and...

  • INTERMEDIATION EFFICIENCY AND PRODUCTIVITY OF COMMERCIAL BANKS IN KENYA; A Data Envelopment and Malmquist Productivity Index Analysis. Nasieku, Tabitha; Kosimbei, George; Obwogi, Joseph // Economics & Finance Review;Apr2013, Vol. 3 Issue 2, p1 

    This paper analyses the intermediation efficiency and productivity of Kenyan commercial banks between 2001 and 2011. It is anchored on the research evaluating the intermediation efficiency and productivity of commercial banks in Kenya. The study adopts a non-parametric approach Data Envelopment...

  • EFFICIENCE DES BANQUES EN AFRIQUE : CAS DE L'UEMOA. Dramani, Latif; Ndiaye, Aliou; Niang, Tacko // Studia Universitatis Babes-Bolyai, Oeconomica;2011, Vol. 56 Issue 1, p52 

    This paper addresses the problem of banks efficiency. The methodology revolves around the use of nonparametric technique Data Envelopment Analysis (DEA) to measure different types of efficiency, based on commercial Bank data from 2002 to 2008 for eight member countries of the UEMOA. The results...

  • BANKS IN PORTUGAL: SERVICE PRODUCERS OR FINANCIAL INTERMEDIARIES? Martins, Ana Isabel // Tourism & Management Studies;2010, Issue 6, p131 

    Financial and monetary intermediation have always been the core competencies of banks. However, to balance for the significant reduction in bank intermediation margins in recent years, institutions have promoted the increase of their charges, through the supply of banking services and...

  • MEASURING THE EFFICIENCY IN THE ROMANIAN BANKING SYSTEM THROUGH THE METHOD OF THE DATA ENVELOPMENT ANALYSIS [DEA]. Manta, Alina Georgiana; Bădîrcea, Roxana Maria // Annals of the University of Craiova, Economic Sciences Series;2014, Vol. 1 Issue 42, p23 

    The purpose of this paper is to reveal an alternative method of measuring the banking performance through the banking efficiency. In order to estimate the banking efficiency we have applied the Data Envelopment Analysis - DEA technique. In the analysis we made, we have used the approach of the...

  • MEASURING EFFICIENCY OF COMMERCIAL BANKS IN A DEVELOPING ECONOMY: THE CASE OF TURKEY. Percin, Selcuk; Ayan, Tuba Yakici // Investment Management & Financial Innovations;2006, Vol. 3 Issue 2, Special section p217 

    The objective of this study is to measure and evaluate the efficiency of commercial banks in Turkey using a Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) methodologies. For this purpose, two outputs representing total loans and non-interest income, and four inputs...

  • Financial liberalization and banking efficiency: evidence from Turkey. Denizer, Cevdet A.; Dinc, Mustafa; Tarimcilar, Murat // Journal of Productivity Analysis;Jun2007, Vol. 27 Issue 3, p177 

    This paper examines the banking efficiency in a pre- and post-liberalization environment by drawing on the Turkish experience by using DEA. The paper also investigates the scale effect on efficiency. Our findings suggest that liberalization programs were followed by an observable decline in...

  • Productivity Gains of Financial Industry: Empirical Evidence from Malaysia. Ab-Rahim, Rossazana // IUP Journal of Bank Management;Aug2012, Vol. 11 Issue 3, p36 

    The increased competitive forces due to the structural reforms in the banking environment stimulate the incumbents operating inside the production frontier. Banks invest more in innovation and technological tools; as a result, the production frontier shifts outwards. By employing Data...

  • Post Financial Deregulations Era and Efficiency of Pakistan Banking Sector. Ali, Rafaqet; Afzal, Muhammad // Interdisciplinary Journal of Contemporary Research in Business;Dec2011, Vol. 3 Issue 8, p1177 

    This study examines technical, pure technical and scale efficiency of Pakistani banks during post financial reforms period by using data from 2004 to 2009. Non parametric Data Envelopment Analysis is applied for this purpose. The results suggest that technical efficiency decreases during middle...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics