Bank efficiency in emerging Asian countries

Phan, Hanh; Daly, Kevin; Akhter, Selim

doi:10.1016/j.ribaf.2016.07.012

Cited by 46 publications

(16 citation statements)

References 29 publications

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“…The Boone indicator's positive coefficient (BI) depicts that the efficiency of cost decreases in increased market competition. This result is analogous to the finding of H. T. M. Phan et al (2016). The coefficient of BSD reports a meaningful positive relationship with the efficiency of cost.…”

Section: Determinants Of Efficiency and Examination Of The Impact Of The Cost Of Financial Intermediation And Risksupporting

confidence: 86%

Relationship among cost of financial intermediation, risk, and efficiency: Empirical evidence from Bangladeshi commercial banks

Gupta

Sarker

Rahman

2021

Cogent Economics & Finance

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The global financial crisis and stiff market competition enhance risk exposures that raise debate on the cost of financial intermediation and the supremacy of banks' efficiency. This study examines the concurrent effects of bank risk, efficiency and cost of financial intermediation of Bangladeshi commercial banks. The Two-Step System GMM (2GMM) estimators of unbalanced dynamic panel data of 32 commercial banks from 2000 to 2016 addresses key factors rigorously in the light of bank-level, industry-level, and macroeconomic-level phenomenon. Efficiency gains cost the spread of banks' financial intermediation, and risk-taking negatively affects the return. Cost-efficient banks are taking more credit risk; however, more efficiency gains reduce banks' risk substantially. Size (cost of intermediation) of banks positively (inversely) affect the risk-taking (efficiency) behaviour of banks. Market competition enhances the risk and efficiency and reduces banks'

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Section: Determinants Of Efficiency and Examination Of The Impact Of The Cost Of Financial Intermediation And Risksupporting

confidence: 86%

Relationship among cost of financial intermediation, risk, and efficiency: Empirical evidence from Bangladeshi commercial banks

Gupta

Sarker

Rahman

2021

Cogent Economics & Finance

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“…Though financial depth is positively associated with financial inclusion, returns on assets is negatively correlated with inclusion (Wang & Guan, 2017), possibly explaining why lower-income people remained continually excluded. Broader inclusion in middleincome countries (VIP) could lead to higher adverse borrower selection with implications of lower efficiency and threatening nonperforming loans (Thi My Phan, Daly, & Akhter, 2016). Le, Chuc, and Taghizadeh-Hesary (2019) find progress in financial inclusion among the VIP countries but a decreasing trend in financial efficiency, suggesting increasing social cost in information and transactions.…”

Section: Introductionmentioning

confidence: 99%

Financial inclusion dynamics in Southeast Asia: An empirical investigation on three countries

et al. 2020

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This paper examines the determinants of financial inclusion in Vietnam, Indonesia, and the Philippines (VIP). We employ a probit model to the World Bank's Global Findex Dataset of 2017. The analysis compares individuals' access to formal and informal financial services, savings, and credit tools, considering individual socioeconomic characteristics. The study finds significant gaps in financial access between individuals based on gender, age, income, education, location, and job status. Indonesia made more considerable improvements in financial inclusion than the Philippines and Vietnam. Access to savings and credit in the VIP remain low, mainly favoring adults, higher earners, formally employed, and the more educated ones. Females in the VIP have a higher likelihood to be financially included than males, they are more likely to hold savings accounts, to participate in informal finance, while they perceived fewer barriers to formal banking. Formal and informal services coexist in the VIP, while formal financial services often exclude the less privileged. Lack of money, high cost of finance, and perception of financial services as unnecessary are the largest obstacles to inclusion in the VIP, being more burdensome for low-income and less-educated people. Mobile banking services have developed yet leave the less-fortunate people unserved. Age plays a vital role in savings and credit behavior, with the VIP missing to ensure access for young people to services.

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“…Following Phan et al (2016) and others, banking efficiency is associated with banking competition (LERNER, the Lerner index of the banking sector mark-ups), market concentration (CONCEN, the ratio of three largest banks' assets to all commercial banks' assets), and banking regulation (RS, a regulatory stringency index for the banking sector), economic growth (GDPGR, the GDP growth rate), and inflation (INF, the inflation rate). The information generation hypothesis suggests a negative impact of competition on banking efficiency (Marquez 2002).…”

Section: Second Stage: the Interrelationship Between Banking Efficiency And Fintech Creditmentioning

confidence: 99%

Fintech Credit and Bank Efficiency: International Evidence

Nguyen

et al. 2021

IJFS

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The expansion of fintech credit around the world is challenging the global banking system. This study investigates the interrelationships between the development of fintech credit and the efficiency of banking systems in 80 countries from 2013 to 2017. The findings indicate a two-way relationship between them. More specifically, a negative relationship between bank efficiency and fintech credit implies that fintech credit is more developed in countries with less efficient banking systems. Meanwhile, a positive impact of fintech credit on the efficiency of banking systems suggests that fintech credit may serve as a wake-up call to the banking system. Therefore, fintech credit should be encouraged by the authorities around the world.

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Bank efficiency in emerging Asian countries

Cited by 46 publications

References 29 publications

Relationship among cost of financial intermediation, risk, and efficiency: Empirical evidence from Bangladeshi commercial banks

Relationship among cost of financial intermediation, risk, and efficiency: Empirical evidence from Bangladeshi commercial banks

Financial inclusion dynamics in Southeast Asia: An empirical investigation on three countries

Fintech Credit and Bank Efficiency: International Evidence

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