The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking
This paper examines the cost efficiency of banks operating in selected countries of the Association of Southeast Asian Nations (ASEAN). We calculate the cost efficiency base on accounting efficiency and economic efficiency using Stochastic Frontier Analysis (SFA) and then classify it as efficient...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2017
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| Online Access: | http://journalarticle.ukm.my/11248/ http://journalarticle.ukm.my/11248/1/jeko_51%281%29-10.pdf |
| _version_ | 1848812664143216640 |
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| author | Abdul Mongid, Muazaroh Muazaroh, |
| author_facet | Abdul Mongid, Muazaroh Muazaroh, |
| author_sort | Abdul Mongid, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This paper examines the cost efficiency of banks operating in selected countries of the Association of Southeast Asian
Nations (ASEAN). We calculate the cost efficiency base on accounting efficiency and economic efficiency using Stochastic
Frontier Analysis (SFA) and then classify it as efficient and not. Further, bank specific and economic variables are
combined to determine the cost efficiency and the efficiency category (efficiency dummy) using linear regression and
logistic regression. The results show that bank efficiency determined by asset size, dummy of economic crisis, interest
rate gap, economic growth, inflation, capital, earning assets and loan losses provision. Only capital, earning asset and
loan loss provision are consistent for accounting and economic efficiencies. For economic variable, economic growth
and inflation rate are only significant in the accounting efficiency. The result implied that ASEAN banking should continue
to consolidate the asset size and the authority should create high economic growth and a low inflation environment to
make their banking industry more efficient. |
| first_indexed | 2025-11-15T00:05:53Z |
| format | Article |
| id | oai:generic.eprints.org:11248 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:05:53Z |
| publishDate | 2017 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:112482018-01-13T23:26:54Z http://journalarticle.ukm.my/11248/ The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking Abdul Mongid, Muazaroh Muazaroh, This paper examines the cost efficiency of banks operating in selected countries of the Association of Southeast Asian Nations (ASEAN). We calculate the cost efficiency base on accounting efficiency and economic efficiency using Stochastic Frontier Analysis (SFA) and then classify it as efficient and not. Further, bank specific and economic variables are combined to determine the cost efficiency and the efficiency category (efficiency dummy) using linear regression and logistic regression. The results show that bank efficiency determined by asset size, dummy of economic crisis, interest rate gap, economic growth, inflation, capital, earning assets and loan losses provision. Only capital, earning asset and loan loss provision are consistent for accounting and economic efficiencies. For economic variable, economic growth and inflation rate are only significant in the accounting efficiency. The result implied that ASEAN banking should continue to consolidate the asset size and the authority should create high economic growth and a low inflation environment to make their banking industry more efficient. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11248/1/jeko_51%281%29-10.pdf Abdul Mongid, and Muazaroh Muazaroh, (2017) The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking. Jurnal Ekonomi Malaysia, 51 (1). pp. 119-131. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2017.html |
| spellingShingle | Abdul Mongid, Muazaroh Muazaroh, The efficiency and inefficiency of the banking sectors: evidence from selected ASEAN banking |
| title | The efficiency and inefficiency of the banking sectors: evidence from selected
ASEAN banking |
| title_full | The efficiency and inefficiency of the banking sectors: evidence from selected
ASEAN banking |
| title_fullStr | The efficiency and inefficiency of the banking sectors: evidence from selected
ASEAN banking |
| title_full_unstemmed | The efficiency and inefficiency of the banking sectors: evidence from selected
ASEAN banking |
| title_short | The efficiency and inefficiency of the banking sectors: evidence from selected
ASEAN banking |
| title_sort | efficiency and inefficiency of the banking sectors: evidence from selected
asean banking |
| url | http://journalarticle.ukm.my/11248/ http://journalarticle.ukm.my/11248/ http://journalarticle.ukm.my/11248/1/jeko_51%281%29-10.pdf |