What is going on with studies on banking efficiency?

Abreu, Emmanuel Sousa de; Kimura, Herbert; Sobreiro, Vinícius Amorim

doi:10.1016/j.ribaf.2018.07.010

Cited by 24 publications

(14 citation statements)

References 97 publications

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“…This initial concern is about how to measure the efficiency of each FI. This question is far from being simple or consensual in the specialized literature, as it currently uses a wide range of approaches, methods and tools (de Abreu et al, 2018). The second question concerns the association of measured efficiency with some endogenous or exogenous variables to FIs.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Determinants of efficiency in state-chartered financial institutions: Why financial education and freedom matter

Abreu

Kimura

2020

Heliyon

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In this paper, we verify which qualitative banking attributes can determine the level of American state-chartered Financial Institutions (FIs) and evaluate its underlying variables. The methodology followed three procedures of analysis. First, we measured banking efficiency using a two-stage SBM network data envelopment analysis (NDEA). Subsequently, we used machine learning methods to predict efficient FIs from qualitative attributes. Finally, we tested the variables related to the attributes, using a fractionated logistic regression controlled by economic-financial variables. As main results, we found that attributes linked to political-administrative localization criteria were the more important attribute in predicting if the FI was in the efficient group; we confirmed the recent findings of the literature that state that less governmental influence (freedom) is related to more efficient institutions. Besides that, we found that a population with a higher financial education have FIs with higher levels of efficiency.

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Section: Brief Literature Reviewmentioning

confidence: 99%

Determinants of efficiency in state-chartered financial institutions: Why financial education and freedom matter

Abreu

Kimura

2020

Heliyon

Self Cite

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“…An extant literature evaluates the relative performance of the banking sector, particularly in terms of profitability, productivity and efficiency of the banking sector for different countries (Berger et al ., ; Paradi and Zhu, ; Sharma et al ., ; Bhatia et al ., ; de Abreu et al ., ). Furthermore, the previous research has mainly investigated how banking sector performance is related to financial sector reforms, size, and scale of banking sectors, its deregulation, restructuring, and ownership.…”

Section: Introductionmentioning

confidence: 97%

“…In the banking sector efficiency literature survey, most of the earlier studies have adopted TLS method (Colwell and Davis, ; Toby, ; Iršová and Havránek, ; Paradi and Zhu, ; Sharma et al ., ; Kumar and Gulati, ; Jia, ). The studies that have used SLR method considered very limited number of papers and keywords (Aiello and Bonanno, ; Aiello and Bonanno, ; de Abreu et al ., ). For instance, Berger et al .…”

Section: Introductionmentioning

confidence: 97%

Banking Sector Performance, Profitability, and Efficiency: A Citation‐based Systematic Literature Review

Ahmad

Naveed

Ahmad

et al. 2019

Journal of Economic Surveys

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This study presents a citation-based systematic literature review on banking sector performance, particularly in terms of profitability, productivity, and efficiency. Specifically, the study aims to identify the leading sources of knowledge in terms of the most influential journals, authors, and papers. The paper presents a content analysis of the 100 most cited papers. In total, 1996 peerreview papers were found relevant in the Scopus database by using a comprehensive list of keywords. The results show that the Journal of Banking & Finance appears to be the leading journal in terms of publication count and citations. Based on total citations, Allen Berger is the most prolific author. The most cited paper is "Problem loans and cost efficiency in commercial banks" by Allan Berger and Robert DeYoung. The content analysis of the top 100 papers identifies five essential themes: determinants of efficiency, methodology, ownership, financial crises, and scale economies. In terms of estimation approaches, 74% of papers employed frontier analysis, which includes 34% parametric and 40% nonparametric methods, and remaining 26% have used financial ratio analysis. Additionally, stochastic frontier and data envelopment analysis are widely used in parametric and nonparametric methods, respectively. An intermediate approach is extensively adopted for the specification of inputs and outputs.

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“…The concept of corporate governance and its role in the efficiency of banks got attention after incorporating reforms and global banking sector panics. Moreover, in Pakistan after the recent development of corporate governance code 2017 policies, rules and regulations; it is essential to evaluate compliance of previous 2002 and 2012 codes of corporate governance and Abreu, Kimura, and Sobreiro (2019) examined 87 research papers from 2011 to 2017 published on banking efficiency and found low research productivity in the field of banking efficiency. They further suggested that banking efficacy should not only study due to the financial crisis but also due to the introduction of new technologies, regulatory changes and structural changes in the banking sector.…”

Section: Introductionmentioning

confidence: 99%

Role of Corporate Governance in Bank’s Efficiency in Pakistan

Ullah

2020

Studies in Business and Economics

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The purpose of this research paper is to explore the role of corporate governance of banks (independence of the board, board size, CEO duality, audit committee independence, managerial ownership) to boosting up the bank’s efficiency. The study uses bank size, macro-economic conditions, banking structure and economic freedom as control variables. The sample size of the study is 21 Pakistani banks for the period of 2007-2016 and fixed effect panel regression estimation technique is used for data analysis. The results suggest that corporate governance has a statistically significant negative impact on management efficiency, positive effect on profit efficiency and cost efficiency of the banks. Moreover, the findings show that operating efficiency turned out to have a statistically insignificant relationship with corporate governance. Reforms of corporate governance should be adopted efficiently and effectively to boost the banking sector efficiency.

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What is going on with studies on banking efficiency?

Cited by 24 publications

References 97 publications

Determinants of efficiency in state-chartered financial institutions: Why financial education and freedom matter

Determinants of efficiency in state-chartered financial institutions: Why financial education and freedom matter

Banking Sector Performance, Profitability, and Efficiency: A Citation‐based Systematic Literature Review

Role of Corporate Governance in Bank’s Efficiency in Pakistan

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