Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis

More than a decade following the severe economic crisis 1997, Indonesia has undergone major regulatory changes in its banking industry. This article examines the impact of these regulatory changes on the relative technical efficiency (TE) of the Indonesian banking industry employing data envelopment...

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Main Authors: Defung, F., Salim, Ruhul, Bloch, Harry
Format: Journal Article
Published: Routledge 2016
Online Access:http://hdl.handle.net/20.500.11937/43951
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author Defung, F.
Salim, Ruhul
Bloch, Harry
author_facet Defung, F.
Salim, Ruhul
Bloch, Harry
author_sort Defung, F.
building Curtin Institutional Repository
collection Online Access
description More than a decade following the severe economic crisis 1997, Indonesia has undergone major regulatory changes in its banking industry. This article examines the impact of these regulatory changes on the relative technical efficiency (TE) of the Indonesian banking industry employing data envelopment analysis (DEA) and censored Tobit regression model. Additionally, the bootstrap approach of Simar and Wilson is employed to provide statistical properties to the DEA efficiency score. The findings show that the industry on average is inefficient over the period of analysis. Also, state-owned and foreign-owned banks are found to be more efficient than any other group of banks. Finally, the impact of regulatory reforms is generally positive and statistically significant.
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spelling curtin-20.500.11937-439512017-09-13T14:02:53Z Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis Defung, F. Salim, Ruhul Bloch, Harry More than a decade following the severe economic crisis 1997, Indonesia has undergone major regulatory changes in its banking industry. This article examines the impact of these regulatory changes on the relative technical efficiency (TE) of the Indonesian banking industry employing data envelopment analysis (DEA) and censored Tobit regression model. Additionally, the bootstrap approach of Simar and Wilson is employed to provide statistical properties to the DEA efficiency score. The findings show that the industry on average is inefficient over the period of analysis. Also, state-owned and foreign-owned banks are found to be more efficient than any other group of banks. Finally, the impact of regulatory reforms is generally positive and statistically significant. 2016 Journal Article http://hdl.handle.net/20.500.11937/43951 10.1080/00036846.2016.1170934 Routledge restricted
spellingShingle Defung, F.
Salim, Ruhul
Bloch, Harry
Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis
title Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis
title_full Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis
title_fullStr Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis
title_full_unstemmed Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis
title_short Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis
title_sort has regulatory reform had any impact on bank efficiency in indonesia? a two-stage analysis
url http://hdl.handle.net/20.500.11937/43951