Applying a non-parametric Data Envelopment Analysis (DEA) method, this paper attempts to investigate the efficiency of Malaysian banks during the post-merger period. We further analyzed the impact of risk and problem loans on Malaysian bank efficiency, when compared to the results attained from the basic DEA model. We found that the merger has largely benefited small and medium sized banks while on the other hand, large banks suffer from scale inefficiency and have been consistently operating at declining returns to scale (DRS). We found that the inclusion of loan loss provisions has resulted in an increase in the estimated mean efficiency levels for all banks under study. Our results also suggest that the mean pure technical efficiency estimates are much more sensitive than the mean scale efficiency estimates to the exclusion of risk factors.

(2008). Risks and efficiency in Malaysian banking [journal article - articolo]. In SAVINGS AND DEVELOPMENT. Retrieved from http://hdl.handle.net/10446/27406

Risks and efficiency in Malaysian banking

2008-01-01

Abstract

Applying a non-parametric Data Envelopment Analysis (DEA) method, this paper attempts to investigate the efficiency of Malaysian banks during the post-merger period. We further analyzed the impact of risk and problem loans on Malaysian bank efficiency, when compared to the results attained from the basic DEA model. We found that the merger has largely benefited small and medium sized banks while on the other hand, large banks suffer from scale inefficiency and have been consistently operating at declining returns to scale (DRS). We found that the inclusion of loan loss provisions has resulted in an increase in the estimated mean efficiency levels for all banks under study. Our results also suggest that the mean pure technical efficiency estimates are much more sensitive than the mean scale efficiency estimates to the exclusion of risk factors.
articolo
2008
Par l’application d’une méthode non paramétrique de Data Envelopment Analysis (DEA); cet article essaie d’étudier l’efficience des banques de Malaisie durant la période de post-fusion. On a aussi analysé l’impact du risque et des prêts problématiques sur la performance des banques; en faisant la comparaison avec les résultats du modèle de base DEA. On a trouvé que les fusions entre banques ont bénéficié les banques petites et moyennes tandis que les banques grandes souffrent d’inéfficiences d’échelle et ont opéré avec des rendement d’échelle en diminution. On a trouvé que l’inclusion des provisions pour pertes sur prêts a entraîné une augmentation des niveaux de efficience moyenne pour toutes les banques étudiées. Les résultats suggèrent aussi que les estimations purement de l’efficience technique moyenne sont beaucoup plus sensibles que les estimations de l’efficience d’échelle moyenne à l’exclusion des facteurs de risque.
Sufian, Fadzlan
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/27406
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