Measuring bank efficiency: tradition or sophistication? – A note
نویسندگان
چکیده
The recent literature on measuring bank performance indicates a preference for sophisticated techniques over simple accounting ratios. We explore the results and relationships between bank efficiency estimates using accounting ratios and Data Envelope Analysis (DEA) with bootstrap among Jamaican banks between 1998 and 2007. The results indicate different outcomes for the traditional accounting ratios and the sophisticated DEA methodology in the measurement of bank efficiency. GLS random effects two-variable regression tests for superiority using a risk index for insolvency suggest an advantage in favour of the DEA.
منابع مشابه
The application of super efficiency technics in measuring the efficiency of bank branches (Case study: Melli Bank of Gilan Province)
In today's competitive world, many manufacturing and service firms, including banks, have been forced to use new managerial approaches, and methods for assessing organizational performance. The Data Envelopment Analysis (DEA) approach is one of these approaches, which has been used to evaluate the performance of organizations since 1978. The purpose of this research is to use the technology sup...
متن کاملشناسایی متغیرها و نسبتهای مؤثر در اندازهگیری کارایی شعب بانک
Organizations reasponsiveness is accomplished through reports on performance appraisals or operational audits. Evaluating organization's efficiency is one of the important parts of the organizations appraisal performance. Since the evaluation of Banks' efficiency in its branches is completed using different models with the help of some intervening variables and ratios, therefore hence the selec...
متن کاملA Survey and Measuring Efficiency Level in the Country\'s Banking System, and the Effective Factors
Human being always wants to be more efficient in order to achieve more profit or welfare. In economic point of view, efficiency means optimize allocation of resources and maximize use of resources with minimum cost in a given technology. Nowadays, efficiency calculation in organizations or in different industries is a necessary step for comparing the level of competition in domestic and foreig...
متن کاملA Note on: Alternative Quantitative Measurements of Growth and Welfare for Policy Analysis
Measuring development, growth and welfare is an important issue in normative and positive economics.The issue is more critical in developing economies where a good statistical indicator of income, livingstandard or poverty is crucial for decision-makers in corporate, government, non-government andinternational organizations in their for-profit or non-profit plans to promote business and trade, ...
متن کاملBank Loans with Chinese Characteristics: Some Evidence on Inside Debt in a State- Controlled Banking System
We study a transitional economy where state-controlled banks make loan decisions based on noisy inside information on prospective borrowers, and may lend to avert unemployment and social instability. In China, poor financial performance and high managerial expenses increase the likelihood of obtaining a bank loan, and bank loan approval predicts poor subsequent borrower performance. Negative ev...
متن کامل