THEORETICAL ASPECTS OF COMMERCIAL BANK’S EFFICIENCY EVALUATION

X-Efficiency of Commercial Banks in China

This analysis investigates the efficiency of Chinese commercial banks between 1997 to 2002. DEA method is employed to estimate overall cost, technical, allocative, pure technical and scale efficiency scores. In the second stage regression, ownership, market share and technology are chosen as the underlying driving factors. To minimize the bias arising from the inherent dependency problem, the b...

Multi-Component Efficiency with Shared Resources in Commercial Banks

Performance Evaluation of Commercial Banks in India

A Sound Banking System is essential for the future growth of any economy. In India, among the banking institution in the organized sector, the commercial banks are the oldest institutions having a wide network of branches, commanding utmost public confidence and having the lion’s share in the total banking operations. The Financial Sector Reforms were implemented in our country during 1991-92 w...

Financial Information effects on the measurement of Commercial Banks’ Efficiency

Using Stochastic Frontier Analysis (SFA) in a sample of commercial banks from 107 countries for the period 1996-2003, we obtain a mean cost efficiency score of 0,84, which supports the evidence found in other works, suggesting an improvement of efficiency scores over the ones obtained in the previous decade. Adding some data on the financial information framework (Bank Regulation and supervisio...

The profit efficiency of small US commercial banks

This study investigates the profit efficiency (PROFEFF) of small banks (those under $500 million in total assets) for 1990–96. Assuming that small banks and large banks use the same production technology, we find, consistent with Berger and Mester [J. Bank. Finance 21 (1997) 875], that small banks are more profit efficient than large banks. Small banks in non-metropolitan statistical areas (non...