Download or read book Evaluating the Productive Efficiency and Performance of U S Commercial Banks written by Richard S. Barr and published by . This book was released on 1999 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Evaluating the Productive Efficiency and Performance of U S Commercial Banks written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Federal Reserve Bank of Dallas presents the full text of the December 1999 working paper entitled "Evaluating the Productive Efficiency and Performance of U.S. Commercial Banks," written by Richard S. Barr, Kory A. Killgo, Thomas F. Siems, and Sheri Zimmel. The text is available in PDF format. This paper uses a data envelopment analysis (DEA) model to evaluate the productive efficiency and performance of U.S. commercial banks from 1984 to 1998. The results suggest that the impact of varying economic conditions is mediated by the relative efficiencies of the banks that operate in these conditions.
Download or read book Evaluating Productive Efficiency written by Abdel Anouze and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial institutes are an integral part of any modern economy. In the 1970s and 1980s, Gulf Cooperation Council (GCC) countries made significant progress in financial deepening and in building a modern financial infrastructure. This study aims to evaluate the performance (efficiency) of financial institutes (banking sector) in GCC countries. Since, the selected variables include negative data for some banks and positive for others, and the available evaluation methods are not helpful in this case, so we developed a Semi Oriented Radial Model to perform this evaluation. Furthermore, since the SORM evaluation result provides a limited information for any decision maker (bankers, investors, etc.), we proposed a second stage analysis using classification and regression (C&R) method to get further results combining SORM results with other environmental data (Financial, economical and political) to set rules for the efficient banks, hence, the results will be useful for bankers in order to improve their bank performance and to the investors, maximize their returns. Mainly there are two approaches to evaluate the performance of Decision Making Units (DMUs), under each of them there are different methods with different assumptions. Parametric approach is based on the econometric regression theory and nonparametric approach is based on a mathematical linear programming theory. Under the nonparametric approaches, there are two methods: Data Envelopment Analysis (DEA) and Free Disposal Hull (FDH). While there are three methods under the parametric approach: Stochastic Frontier Analysis (SFA); Thick Frontier Analysis (TFA) and Distribution-Free Analysis (DFA). The result shows that DEA and SFA are the most applicable methods in banking sector, but DEA is seem to be most popular between researchers. However DEA as SFA still facing many challenges, one of these challenges is how to deal with negative data, since it requires the assumption that all the input and output values are non-negative, while in many applications negative outputs could appear e.g. losses in contrast with profit. Although there are few developed Models under DEA to deal with negative data but we believe that each of them has it is own limitations, therefore we developed a Semi-Oriented-Radial-Model (SORM) that could handle the negativity issue in DEA. The application result using SORM shows that the overall performance of GCC banking is relatively high (85.6%). Although, the efficiency score is fluctuated over the study period (1998-2007) due to the second Gulf War and to the international financial crisis, but still higher than the efficiency score of their counterpart in other countries. Banks operating in Saudi Arabia seem to be the highest efficient banks followed by UAE, Omani and Bahraini banks, while banks operating in Qatar and Kuwait seem to be the lowest efficient banks; this is because these two countries are the most affected country in the second Gulf War. Also, the result shows that there is no statistical relationship between the operating style (Islamic or Conventional) and bank efficiency. Even though there is no statistical differences due to the operational style, but Islamic bank seem to be more efficient than the Conventional bank, since on average their efficiency score is 86.33% compare to 85.38% for Conventional banks. Furthermore, the Islamic banks seem to be more affected by the political crisis (second Gulf War), whereas Conventional banks seem to be more affected by the financial crisis.
Download or read book The Comparative Efficiency Performance of Small and Large US Commercial Banks in the Pre and Post Deregulation Eras written by Elyas Elyasiani and published by . This book was released on 2016 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purposes of this paper are twofold: first, to employ a flexible non-parametric approach to contrast the productive efficiency of a sample of small and large banks in order to examine the relationship between size and productive performance in the banking industry. Second, to investigate whether the relative efficiency performance of small and large banks has changed following the changes in the banking environment in the 1980s and to contrast the rate of technological change achieved by these two groups of banks over this time period. The findings based on group-specific frontiers suggest that in the pre-deregulation environment small banks were more efficient than the large banks while in the deregulated environment small and large banks were equally efficient. Moreover, the dispersion in the efficiency measures of the small banks is found to have increased substantially while that of the large banks changed little over the sample period.
Download or read book The Productive Efficiency of North Carolina Commercial Banks written by John A. Haslem and published by . This book was released on 1975 with total page 138 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Productive Efficiency in Commercial Banks written by Stanton Glenn Ullerich and published by . This book was released on 1995 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book X efficiency and Management Quality in Commercial Banks written by Robert DeYoung and published by . This book was released on 1994 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Efficiency and Productivity in U S Commercial Banking written by Abinet Onkiso and published by . This book was released on 2010 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, I estimate efficiency and productivity change in the U.S. banking industry. The data consist of annual observations of 25 banks from 2004 to 2008. The paper follows a two-stage procedure. In the first-stage, utilizing the non-parametric methodologies, input-oriented Data Envelopment Analysis (DEA) model and DEA based Malmquist indices are used to estimate the efficiency scores for each bank in the sample. Further, the productivity index is decomposed into technical efficiency and technological change components. In the second-stage, I use Tobit censored regression to determine the impact of 'environmental' factors on banks' efficiency. The results of DEA suggest that U.S. banks experienced an average annual productivity growth of almost 9 percent over the sample period as well as that the dominant source of efficiency is technological change (TC) which shows 10.8 percent increase during the same period. The results of Tobit regression indicate that bank capitalization, market share and loan ratios have positive impacts on bank efficiency whereas size has a negative influence on bank performance which is consistent with previous studies.
Download or read book Problem Loans and Cost Efficiency in Commercial Banks written by Allen N. Berger and published by . This book was released on 1995 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Measuring Commercial Bank Efficiency written by Dimitri Vittas and published by World Bank Publications. This book was released on 1991 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Measuring bank efficiency is difficult because there is no satisfactory definition of bank output. International comparisons based on operating costs and margins are fraught with problems. These stem from substantial differences in capital structure (leverage), business or product mix, range and quality of services, inflation rates, and accounting conventions (especially about the valuation of assets, the level of loan loss provisioning, and the use of hidden reserves). Facile and uncritical use of ratios cannot substitute for detailed knowledge and understanding of banking structure and practice.
Download or read book Output Measurement in the Service Sectors written by Zvi Griliches and published by University of Chicago Press. This book was released on 2008-04-15 with total page 576 pages. Available in PDF, EPUB and Kindle. Book excerpt: Is the fall in overall productivity growth in the United States and other developed countries related to the rising share of the service sectors in the economy? Since services represent well over half of the U.S. gross national product, it is also important to ask whether these sectors have had a slow rate of growth, as this would act as a major drag on the productivity growth of the overall economy and on its competitive performance. In this timely volume, leading experts from government and academia argue that faulty statistics have prevented a clear understanding of these issues.
Download or read book Deregulation and Efficiency of Indian Banks written by Sunil Kumar and published by Springer Science & Business Media. This book was released on 2013-10-23 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: The goal of this book is to assess the efficacy of India’s financial deregulation programme by analyzing the developments in cost efficiency and total factor productivity growth across different ownership types and size classes in the banking sector over the post-deregulation years. The work also gauges the impact of inclusion or exclusion of a proxy for non-traditional activities on the cost efficiency estimates for Indian banks, and ranking of distinct ownership groups. It also investigates the hitherto neglected aspect of the nature of returns-to-scale in the Indian banking industry. In addition, the work explores the key bank-specific factors that explain the inter-bank variations in efficiency and productivity growth. Overall, the empirical results of this work allow us to ascertain whether the gradualist approach to reforming the banking system in a developing economy like India has yielded the most significant policy goal of achieving efficiency and productivity gains. The authors believe that the findings of this book could give useful policy directions and suggestions to other developing economies that have embarked on a deregulation path or are contemplating doing so.
Download or read book Efficiency of Financial Institutions written by Allen N. Berger and published by . This book was released on 1997 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Performance of Financial Institutions written by Patrick T. Harker and published by Cambridge University Press. This book was released on 2000-05-18 with total page 516 pages. Available in PDF, EPUB and Kindle. Book excerpt: The efficient operation of financial intermediaries--banks, insurance and pension fund firms, government agencies and so on--is instrumental for the efficient functioning of the financial system and the fueling of the economies of the twenty-first century. But what drives the performance of these institutions in today's global environment? In this volume, world-renowned scholars bring their expertise to bear on the issues. Primary among them are the definition and measurement of efficiency of a financial institution, benchmarks of efficiency, identification of the drivers of performance and measurement of their effects on efficiency, the impact of financial innovation and information technologies on performance, the effects of process design, human resource management policies, as well as others.
Download or read book Returns to Scale Productivity and Efficiency in US Banking 1989 2000 written by Panagiotis G. Michaelides and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Productivity and efficiency analyses have been indispensable tools for evaluating firms' performance in the banking sector. In this context, the use of Artificial Neural Networks (ANNs) has been recently proposed in order to obtain a globally flexible functional form which is capable of approximating any existing output distance function while enabling the a priori imposition of the theoretical properties dictated by production theory, globally. Previous work has proposed and estimated the so-called Neural Distance Function (NDF) which has numerous advantages when compared to widely adopted specifications. In this paper, we carefully refine some of the most critical characteristics of the NDF. First, we relax the simplistic assumption that each equation has the same number of nodes because it is not expected to approximate reality with any reasonable accuracy and different numbers of nodes are allowed for each equation of the system. Second, we use an activation function which is known to achieve faster convergence compared to the conventional NDF model. Third, we use a relevant approach for technical efficiency estimation based on the widely adopted literature. Fitting the model to a large panel data we illustrate our proposed approach and estimate the Returns to Scale, the Total Factor Productivity and the Technical Efficiency in US commercial banking (1989-2000). Our approach provides very satisfactory results compared to the conventional model, a fact which implies that the refined NDF model successfully expands and improves the conventional NDF approach.
Download or read book A Nonparametric Analysis of Efficiency and Productivity in Large U S Banks written by Kankana Mukherjee and published by . This book was released on 1997 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Productive Efficiency in Commercial Banking written by William Longbrake and published by . This book was released on 2015 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: A three-component measure of output is more responsive to complex production-cost relationships in multi-plant firms producing several nonhomogeneous products than the customary single measure of output. The parameters of these three components in the statistical cost function indicate the effects of changes in the scale of operations caused by changes in plant size, firm structure, and type of customer on direct operating costs. Knowledge about the magnitudes of each of these three scale effects is important for regulators in guiding changes in the structure of the banking industry which will protect the viability of the banking system, preserve competition, and promote productive efficiency. This information is also useful to bankers in planning for expansion.Only one of the major productive activities-demand deposit services-in the commercial banking industry was analyzed in this study. Therefore, although the demand deposit results have implications for regulatory policy, these implications may be tempered by the results for other banking activities which were not analyzed in this study.Analysis of the results led to the conclusion that the number of offices operated by a branch bank has little effect on average operating costs per dollar of demand deposits. However, when average office size, as measured by the number of demand deposit accounts, increases, average costs decline in all banks except unit banks which are not affiliated with holding companies. An increase in average account size results in a substantial decline in average costs in banks belonging to all forms of organization. This evidence led to the conclusion that a specification of the statistical cost function which does not restrict the parameters of the three components of total demand deposits-number of accounts, average account size, and number of offices-to be equal is superior to a specification in which these parameters are restricted. The results also suggested that unit and branch nonaffiliated banks with a small average account size and a below average number of demand deposit accounts per office have lower operating costs per dollar of demand deposits than unit and branch affiliated banks. The reverse conclusion holds when average account balance and the number of accounts per office are large.
