Productivity measurement of commercial banks in Malaysia with non-performing loans

Ramli, Noor Asiah; Shariff, S. Sarifah Radiah; Hamid, Nurhayati

doi:10.1504/gber.2019.101865

Cited by 1 publication

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“…Besides, it will be a serious threat to the bank's performance if there is no solution to recover their bad loans, rendering them unable to get the loan to be repaid in full. Some of the studies that include NPL in their investigation are Ramli et al [5], Hamid et al [6], Louhichi and Boujelbene [7], and Anwar et al [8].…”

Section: Introductionmentioning

confidence: 99%

Commercial Banks’ Performance In Malaysia Based On Non-Performing Loan (NPL) Using Two-Stage Data Envelopment Analysis (DEA) Model

Ramli¹

2020

IJATCSE

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Although single-stage Data Envelopment Analysis (DEA) models with undesirable input-output have been extensively studied, there still lacks more systematic investigation of a two-stage DEA model with undesirable variables such as non-performing loan (NPL) in Malaysia. The NPL concept has been widely discussed by economists since the economic downturn in 1997, which had immense impacts on many countries, including Malaysia. This paper studies the performance of commercial banks in Malaysia from 2013 to 2017 using a two-stage Data Envelopment Analysis (DEA) model. The main objective of this paper is to measure the performance of commercial banks in Malaysia by considering NPL and next to determine the suggested value for the selected variables in order to improve the inefficient banks. The findings show that domestic banks were generally more efficient than foreign banks. The results for the whole process show that domestic banks also performed better than foreign banks in both stages. The two-stage model used in this analysis enables inefficient banks to look at where the problem occurs, either in stage 1 or stage 2, thus allowing them to determine the suggested values in that inefficient stage that can bring them towards becoming fully efficient banks.

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Section: Introductionmentioning

confidence: 99%

Commercial Banks’ Performance In Malaysia Based On Non-Performing Loan (NPL) Using Two-Stage Data Envelopment Analysis (DEA) Model

Ramli¹

2020

IJATCSE

View full text Add to dashboard Cite

show abstract

Productivity measurement of commercial banks in Malaysia with non-performing loans

Cited by 1 publication

References 0 publications

Commercial Banks’ Performance In Malaysia Based On Non-Performing Loan (NPL) Using Two-Stage Data Envelopment Analysis (DEA) Model

Commercial Banks’ Performance In Malaysia Based On Non-Performing Loan (NPL) Using Two-Stage Data Envelopment Analysis (DEA) Model

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