Determinants of bank’s efficiency in an emerging economy: A data envelopment analysis approach

PLoS ONE, Journal Year: 2023, Volume and Issue: 18(3), P. e0281663 - e0281663

Published: March 14, 2023

This study aims to assess the influence of internal and external factors on Efficiency banks in Pakistan using Data Envelopment Analysis Approach (DEA). Bank’s is measured through DEA Model input output variables. The variable includes number employees, branches, administration expenses, non-interest loan loss provisions. In contrast, consists net interest income, commissions, total other income. considers determinants bank’s as corporate governance, enterprise risk management, ownership structure (state, foreign, domestic ultimate owned banks), return equity, financial leverage, size bank. include banking macroeconomic conditions. has used data from seventeen commercial over period 2011 2020. (DEA) Logit Probit Regression evaluate research hypotheses. model results show that global ownership, equity have a statistically significant positive impact Efficiency. Enterprise management leverage adversely affect Better governance can help control cost capital enhancement effectiveness capital. Similarly, better lead operational strategic decisions competitive environment.

Language: Английский

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Modelling Profitability Determinants in the Banking Sector: The Case of the Eurozone

Mathematics, Journal Year: 2024, Volume and Issue: 12(6), P. 897 - 897

Published: March 18, 2024

The aim of this study is to analyze which factors affect the profitability banks in eurozone and make recommendations for supporting them achieve higher levels particular countries. operating are specific that they under one monetary policy. main purpose banks’ analysis identify bank-specific macroeconomic determinants help bank management more fully comprehend their importance determinants’ influence when measuring evaluating profitability. For research, we impact (NPL, CIR, NIM, NIF NIT) (GDP, INF, UNM DEBT) on period 2015–2020 using a random effects model, fixed general method moments (GMM). This empirical research analyzed quarterly data series from Eurostat eighteen countries eurozone. We came results eurozone-level NPL, cost-to-income ratio has negative profitability, while net interest income income, trading assets fee commission have positive Considering variables, found only case GDP, inflation rate, unemployment rate gross government debt shown contribution implies different panel techniques with two uncommonly used variables such as ratio. country level differ these findings can give lead policy makers national how enhance levels.

Language: Английский

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Efficiency Assessment and Determinants of Performance: A Study of Jordan’s Banks Using DEA and Tobit Regression

Economies, Journal Year: 2024, Volume and Issue: 12(2), P. 37 - 37

Published: Feb. 1, 2024

This comprehensive study explored the efficiency landscape of Jordanian banking industry from 2006 to 2021, utilizing a dual-pronged approach. First, we assessed scores 15 commercial banks, comprising 13 conventional and 2 Islamic institutions, through data envelopment analysis (DEA). Secondly, investigated determinants influencing relative using Tobit regression model. Our dataset, spanning 240 observations over 16 years, provides nuanced examination dynamics. DEA, specifically focusing on variable return scale (VRS), unveils by accounting for inefficiencies. The research contributes insights into operational efficacy banks robust methodology understanding dynamics in broader financial landscape. results reveal significant relationships between assets, equity, GDP growth, efficiency. Furthermore, it is noteworthy that demonstrate higher compared banks. Additionally, non-significant associations were observed with credit risk, bank size, ratio loan loss provision net income. findings hold implications policymakers, stakeholders, researchers aiming bolster resilience competitiveness Jordan’s sector.

Language: Английский

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Basel III Capital Regulations and Bank Efficiency: Evidence from Selected African Countries

International Journal of Financial Studies, Journal Year: 2022, Volume and Issue: 10(3), P. 57 - 57

Published: July 18, 2022

The core function of a commercial bank is the provision credit facilities to its customers and keep flow cycle economic financial resources balanced. Banks can only perform these functions if they are well regulated efficient. main focus this study analyse efficiency African banks, most importantly after 2008 global crisis when Basel III regulations were popularly adopted by banks globally. research was examined in two ways, first part focused on investigating impact capital operational investment using random effects pooled ordinary least square panel data regression models. second indeed efficient analysing their level input-oriented DEA approach. used audited bank-level from 45 listed operating six nations, namely, South Africa, Nigeria, Kenya, Tanzania, Uganda Malawi, that have Accord for period 2010 2019. obtained IRESS database. findings revealed buffer premiums significantly affect positively. This relationship implies premium does not serve as cushion against financial, market shocks but also improves banks’ influencing decisions perspective cost containment strategies. Another key finding positive influence liquidity coverage ratio has efficiency. implication may simply mean with well-performing ratios operations ability meet short-term obligations such meeting customers’ needs, unannounced depositors’ withdrawals creditors’ repayments, amongst others. result could be interpreted adopting stricter requirements creates giving them confidence undertake profitable high-yielding projects, which invariably lead increased profitability Furthermore, results showed sampled operationally an aggregate 84.8%, efficiency, 94.9%. These suggest largely survive any possible or crisis. It put forward it probable yet adopt strengthen base, less might fail during current work suggests some appropriate policy-based recommendations.

Language: Английский

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Do the Same Determinants Affect Banks’ Profitability and Liquidity? Evidence from West Balkan Countries Using a Panel Data Regression Analysis

Mathematics, Journal Year: 2023, Volume and Issue: 11(19), P. 4072 - 4072

Published: Sept. 25, 2023

This study aims to determine whether the same bank-specific and macroeconomic determinants affect banks’ profitability liquidity. To achieve set goal, panel data regression analysis was applied with fixed effects or random depending on results of Hausman test, as explained in Results. The research is based use aggregate liquidity West Balkan countries during period from 2007 2022. dependent variables are ROA, ROE used proxies for profitability, liquid reserves total assets a proxy findings confirm that both direction, except few variables. main contribution this comprehensive parallel view enables guide bank management better understand significance determinants’ their business. obtained can improve balance between two important principles banking

Language: Английский

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Efficiency of Indian banks in fostering financial inclusion: an emerging economy perspective

Journal of Financial Services Marketing, Journal Year: 2023, Volume and Issue: 29(2), P. 341 - 353

Published: Jan. 6, 2023

Language: Английский

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Measurement and analysis of profitability dynamics of the banking sector in Serbia based on the FLMAW-MARCOS method

Bankarstvo, Journal Year: 2023, Volume and Issue: 52(1), P. 8 - 47

Published: Jan. 1, 2023

Research into the profitability dynamics of banking sector is continuously current, significant, and complex. Bearing that in mind, this paper measures analyzes Serbia using FLMAW-MARCOS methods. The empirical results obtained by applying given methodology show five best years achieved period 2008 - 2022 are order: 2018, 2017, 2008, 2019 2022. worst was 2013. Recently, has improved. It influenced economic climate, management human resources, assets, capital, sales products, costs, profits. digitalization entire business plays a significant role this. impact Covid-19 corona virus pandemic, as well global energy crisis, significant. In order to improve Serbia, it necessary manage sales, costs profits efficiently possible adapt changes climate.

Language: Английский

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Unveiling How Efficiently Sustainability Transforms into Intangible Assets of Financial Institutions

Research in International Business and Finance, Journal Year: 2025, Volume and Issue: unknown, P. 102835 - 102835

Published: Feb. 1, 2025

Language: Английский

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Evaluating Bank Efficiency in the West Balkan Countries Using Data Envelopment Analysis

Mathematics, Journal Year: 2022, Volume and Issue: 11(1), P. 15 - 15

Published: Dec. 20, 2022

The financial systems of the West Balkan countries are mainly based on banks. For an efficient system, it is immense importance that banks operating in do so with high levels efficiency. Furthermore, efficiency needed when comes to involving banking institutions flows order maintain sustainability construction. aim this paper determine whether there a difference between considered and thus show which changes decisionmakers have make improve their systems. We analyze data from revised statements all Albania, Bosnia Herzegovina, Montenegro, North Macedonia Serbia for period 2015 2019, using loans investment as input variables interest income, non-interest income net output variables. results obtained output-oriented DEA model variable return scale shown higher Macedonia, Herzegovina while Albania lower individual analyses levels, improvement more correction amounts then loan placements.

Language: Английский

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Operational Efficiency Evaluation of Chinese Internet Banks: Two-Stage Network DEA Approach

Sustainability, Journal Year: 2022, Volume and Issue: 14(21), P. 14165 - 14165

Published: Oct. 30, 2022

An in-depth study of the operational efficiency Internet banks is essential to enhance banks’ competitiveness and sustainable development. We use two-stage network data envelopment analysis (DEA) model divide process into value operation stage (stage 1) creation 2). This paper adopts R&D investment that reflects characteristics as input in DEA model. It examines operating China’s from 2018 2019, including comprehensive efficiency. The empirical results indicate contribution 2 higher than 1. Similarly, it can also be shown average values banking 2019 are those 2018. In addition, Kruskal–Wallis test shows no significant difference three major economic belts. These have strategic implications for managers, regulators, policymakers who share a common interest boosting financial sustainability performance.

Language: Английский

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