Efficiency and Productivity of Commercial Banks in Nepal: A Malmquist Index Approach

Neupane, Biwesh

doi:10.5296/ajfa.v5i2.4326

Cited by 13 publications

(10 citation statements)

References 35 publications

(26 reference statements)

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“…This leads to infer that, on average, commercial banks have been improving their productivity and efficiency level. This finding is consistent with the findings of Neupane (2013) and Adjei-Frimpong, Gan, Ying, Hu, and Cohen (2015), who have also found a modest growth of banks productivity in their studies.…”

Section: Malmquist Productivity Changesupporting

confidence: 92%

Malmquist Productivity Index Approach in Assessing Performance of Commercial Banks: Evidence from Nepal

Pathak

2019

NRB Econ. Rev.

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Using the DEA-based Malmquist total factor productivity index, this article measures the total factor productivity of Nepalese commercial banks during the period 2010-2011 to 2016-2017. It also examines whether the ownership structure and size of banks affect their efficiency. An input-oriented DEA model is used with aggregate panel data covering all the 28 commercial banks that are currently operating in Nepal. This article adopts constant returns to scale approach to measure and compare the efficiency and productivity of banks and to establish a benchmark for their performance. Interest expense, operating non-interest expense, deposits and labor are used as inputs variables and interest income, operating non-interest income and loan and advances as outputs variables. These data are extracted from the annual reports of the respective commercial banks. The mean efficiency score measured in terms of total factor productivity change resulted 1.008, which indicates that the efficiency level of Nepalese commercial banks has been increasing very slowly at the rate of 0.8% annually. Ownership structure of the banks influences marginally on the efficiency level of banks. The domestic private banks are relatively more efficient than the joint venture banks and the latter are comparatively more efficient than the public banks. The size of banks makes no significant difference in the efficiency level of banks.

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Section: Malmquist Productivity Changesupporting

confidence: 92%

Malmquist Productivity Index Approach in Assessing Performance of Commercial Banks: Evidence from Nepal

Pathak

2019

NRB Econ. Rev.

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“…Negatif berarti semakin stabil bank maka semakin tidak efisien bank. Hasil ini tidak sejalan dengan penelitian sebelumnya Neupane (2013).…”

Section: Hasil Dan Pembahasanunclassified

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Yudaruddin¹

2017

JAE

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PENDAHULUANPengukuran efisiensi dengan menggunakan Rasio Biaya Operasional dengan Pedapatan Operasional (BOPO) sangat lazim digunakan untuk memberikan penilaian atas kinerja efisiensi bank (Peraturan Bank Indonesia Nomor 6/25/PBI/2004). Rasio BOPO hanya memperhatikan seberapa besar pendapatan operasional yang dihasilkan bank jika dibandingkan dengan biaya opersional yang dikeluarkan oleh bank. Rasio BOPO digunakan karena kemudahan perhitungan dan penggunaannya. Namun Demikian, rasio BOPO merupakan pendekatan tradisional dalam pengukuran efisiensi suatu bank. Selain itu, rasio BOPO tidak dapat menggambarkan kondisi bank yang sebenarnya serta hasilnya tidak mudah diinterpretasikan.Pendekatan BOPO tidak memperhatikan indikator lain yang mungkin mempengaruhi tingkat efisiensi dari suatu bank. Kinerja bank tidak semata-mata hanya dilihat seberapa besar ia menghasilkan

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“…The decomposition of productivity growth into efficiency change and technical progress reveals that the efficiency change is positively contributing towards the growth of productivity whereas, the negative growth of technology restrict the potential productivity growth in Indian agriculture. Neupane (2013) show that the productivity change of commercial banks in Nepal has improved over the sample period and that the increase in productivity change in Nepalese commercial banks is due to the technical progress rather than efficiency components. It also reports that the decline in efficiency change is due to decline in both pure efficiency change and scale efficiency change.…”

Section: Literature Reviewmentioning

confidence: 99%

Using DEA and Malmquist Productivity Index to Analyze the Operational Efficiency of Taiwan Biotechnological Industry

Liu

2017

Asian Economic and Financial Review

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Article HistoryThis study employs data envelopment analysis (DEA) method and Malmquist productivity index (MPI) to reexamine the change of operational efficiency for both individual firm and whole biotechnological industry. Concerning the whole industry, lower efficiency of the industry is mostly caused by pure technological inefficiency. When applying the sense of total factor productivity (TFP) index, the changes of TFP in biotechnological industry is most accounted for the efficiency changes rather than technological charges. These results benefit to biotechnology industry managers and regulators through the provision of useful guidelines for management control within the competitive biotechnological industry and market.Contribution/ Originality: This study contributes in the existing literature with employing DEA and MPI to reexamine the change of operational efficiency for biotechnological industry in Taiwan. Concerning the whole industry, lower efficiency of industry is mostly caused by pure technological inefficiency. The changes of TFP is mostly accounted for the efficiency changes.

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Efficiency and Productivity of Commercial Banks in Nepal: A Malmquist Index Approach

Cited by 13 publications

References 35 publications

Malmquist Productivity Index Approach in Assessing Performance of Commercial Banks: Evidence from Nepal

Malmquist Productivity Index Approach in Assessing Performance of Commercial Banks: Evidence from Nepal

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Using DEA and Malmquist Productivity Index to Analyze the Operational Efficiency of Taiwan Biotechnological Industry

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