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A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach
South Asia primarily consists of developing economies with diverse financial systems. The commercial banking industry plays a crucial role in each country’s financial development in the region. This research aims to evaluate commercial banking industries’ efficiency and productivity growth in the So...
Autores principales: | , , , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8986021/ https://www.ncbi.nlm.nih.gov/pubmed/35385496 http://dx.doi.org/10.1371/journal.pone.0265349 |
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author | Shah, Wasi Ul Hassan Hao, Gang Zhu, Nan Yasmeen, Rizwana Padda, Ihtsham Ul Haq Abdul Kamal, Muhammad |
author_facet | Shah, Wasi Ul Hassan Hao, Gang Zhu, Nan Yasmeen, Rizwana Padda, Ihtsham Ul Haq Abdul Kamal, Muhammad |
author_sort | Shah, Wasi Ul Hassan |
collection | PubMed |
description | South Asia primarily consists of developing economies with diverse financial systems. The commercial banking industry plays a crucial role in each country’s financial development in the region. This research aims to evaluate commercial banking industries’ efficiency and productivity growth in the South Asian (SA) region over 6 years (2013–2018). In addition, the technology gap among the banking industries of all countries is also explored. Data envelopment analysis (DEA) Meta-frontier is employed to measure the technical efficiency (TE) and technology gap ratio (TGR) among the countries. Further Malmquist productivity index (MPI) is used for productivity change estimation. Results indicate that, on average, 147 commercial banks (CBs) have a technical efficiency score of 0.6208, while CBs in Nepal are the most efficient in the region with an average score of 0.7153. The Meta frontier analysis also confirms the presence of different production technologies in CBs. Nepal’s CBs group frontier is closer to meta-frontier (technology gap ratio, TGR = 0.9361) While, Bangladesh, Pakistan, India, and Sri Lanka rank second, third, fourth, and fifth, respectively. The results of productivity contend that the total factor productivity change of all 147 CBs decreases by 0.8 percent on average over the study period. CBs have enhanced their productivity growth in Sri Lanka, Nepal, and Pakistan, but declining trends have been witnessed in Indian and Bangladesh’s commercial banking industries. |
format | Online Article Text |
id | pubmed-8986021 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
spelling | pubmed-89860212022-04-07 A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach Shah, Wasi Ul Hassan Hao, Gang Zhu, Nan Yasmeen, Rizwana Padda, Ihtsham Ul Haq Abdul Kamal, Muhammad PLoS One Research Article South Asia primarily consists of developing economies with diverse financial systems. The commercial banking industry plays a crucial role in each country’s financial development in the region. This research aims to evaluate commercial banking industries’ efficiency and productivity growth in the South Asian (SA) region over 6 years (2013–2018). In addition, the technology gap among the banking industries of all countries is also explored. Data envelopment analysis (DEA) Meta-frontier is employed to measure the technical efficiency (TE) and technology gap ratio (TGR) among the countries. Further Malmquist productivity index (MPI) is used for productivity change estimation. Results indicate that, on average, 147 commercial banks (CBs) have a technical efficiency score of 0.6208, while CBs in Nepal are the most efficient in the region with an average score of 0.7153. The Meta frontier analysis also confirms the presence of different production technologies in CBs. Nepal’s CBs group frontier is closer to meta-frontier (technology gap ratio, TGR = 0.9361) While, Bangladesh, Pakistan, India, and Sri Lanka rank second, third, fourth, and fifth, respectively. The results of productivity contend that the total factor productivity change of all 147 CBs decreases by 0.8 percent on average over the study period. CBs have enhanced their productivity growth in Sri Lanka, Nepal, and Pakistan, but declining trends have been witnessed in Indian and Bangladesh’s commercial banking industries. Public Library of Science 2022-04-06 /pmc/articles/PMC8986021/ /pubmed/35385496 http://dx.doi.org/10.1371/journal.pone.0265349 Text en © 2022 Shah et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
spellingShingle | Research Article Shah, Wasi Ul Hassan Hao, Gang Zhu, Nan Yasmeen, Rizwana Padda, Ihtsham Ul Haq Abdul Kamal, Muhammad A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach |
title | A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach |
title_full | A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach |
title_fullStr | A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach |
title_full_unstemmed | A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach |
title_short | A cross-country efficiency and productivity evaluation of commercial banks in South Asia: A meta-frontier and Malmquist productivity index approach |
title_sort | cross-country efficiency and productivity evaluation of commercial banks in south asia: a meta-frontier and malmquist productivity index approach |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8986021/ https://www.ncbi.nlm.nih.gov/pubmed/35385496 http://dx.doi.org/10.1371/journal.pone.0265349 |
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