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Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks

This paper studies the impact of global financial crisis focusing on State Owned Commercial Banks (SCBs) and Private Commercial Banks (PCBs) ownership and others bank specific and macroeconomics factors influencing profit efficiency level of the Bangladesh banking sector. The Slack-Based Data Envelo...

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Main Authors: Kamarudin, Fakarudin, Sufian, Fadzlan, Md Nassir, Annuar
Format: Article
Language:English
Published: Facultad de Contaduría y Administración, Universidad Nacional Autónoma de México 2016
Online Access:http://psasir.upm.edu.my/id/eprint/56382/1/Global%20financial%20crisis%2C%20ownership%20and%20bank%20profit%20efficiency%20in%20the%20Bangladesh%27s%20state%20owned%20and%20private%20commercial%20banks.pdf
http://psasir.upm.edu.my/id/eprint/56382/
http://www.sciencedirect.com/science/article/pii/S0186104216300444
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spelling my.upm.eprints.563822017-07-31T09:12:33Z http://psasir.upm.edu.my/id/eprint/56382/ Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks Kamarudin, Fakarudin Sufian, Fadzlan Md Nassir, Annuar This paper studies the impact of global financial crisis focusing on State Owned Commercial Banks (SCBs) and Private Commercial Banks (PCBs) ownership and others bank specific and macroeconomics factors influencing profit efficiency level of the Bangladesh banking sector. The Slack-Based Data Envelopment Analysis (SBM-DEA) method employed to compute the profit efficiency of 31 commercial banks operating in the Bangladesh over the years 2004–2011. Furthermore, the multivariate panel regression analysis framework based on the Ordinary Least Square (OLS) and Generalized Least Square (GLS) methods comprising the Fixed Effect (FE) and Random Effect (RE) models adopted to examine the determinants of banks profit efficiency. Results indicate the levels of profit efficiency on SCBs and PCBs are increasing by 3.7% and 5.8% during financial crisis years. However, over the period of post financial crisis years exhibited, profit efficiency levels on SCBs and PCBs are decreasing by 38.7% and 9.9%. Although profit efficiency levels on both ownership of banks show declining over the post financial crisis years, the PCBs still higher than SCBs (67.8% > 60.1%) but insignificantly different. Furthermore, the findings reveals that the relationship of size of bank, liquidity, economic growth and market concentration are significantly negative with profit efficiency of SCBs but positive to PCBs. Meanwhile, the factors of capitalization, credit risk and inflation are significant with the positive and negative sign only to the profit efficiency of the SCBs over the period of post global financial crisis. Facultad de Contaduría y Administración, Universidad Nacional Autónoma de México 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56382/1/Global%20financial%20crisis%2C%20ownership%20and%20bank%20profit%20efficiency%20in%20the%20Bangladesh%27s%20state%20owned%20and%20private%20commercial%20banks.pdf Kamarudin, Fakarudin and Sufian, Fadzlan and Md Nassir, Annuar (2016) Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks. Contaduría y Administración, 61 (4). pp. 705-745. ISSN 0186-1042 http://www.sciencedirect.com/science/article/pii/S0186104216300444 10.1016/j.cya.2016.07.006
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This paper studies the impact of global financial crisis focusing on State Owned Commercial Banks (SCBs) and Private Commercial Banks (PCBs) ownership and others bank specific and macroeconomics factors influencing profit efficiency level of the Bangladesh banking sector. The Slack-Based Data Envelopment Analysis (SBM-DEA) method employed to compute the profit efficiency of 31 commercial banks operating in the Bangladesh over the years 2004–2011. Furthermore, the multivariate panel regression analysis framework based on the Ordinary Least Square (OLS) and Generalized Least Square (GLS) methods comprising the Fixed Effect (FE) and Random Effect (RE) models adopted to examine the determinants of banks profit efficiency. Results indicate the levels of profit efficiency on SCBs and PCBs are increasing by 3.7% and 5.8% during financial crisis years. However, over the period of post financial crisis years exhibited, profit efficiency levels on SCBs and PCBs are decreasing by 38.7% and 9.9%. Although profit efficiency levels on both ownership of banks show declining over the post financial crisis years, the PCBs still higher than SCBs (67.8% > 60.1%) but insignificantly different. Furthermore, the findings reveals that the relationship of size of bank, liquidity, economic growth and market concentration are significantly negative with profit efficiency of SCBs but positive to PCBs. Meanwhile, the factors of capitalization, credit risk and inflation are significant with the positive and negative sign only to the profit efficiency of the SCBs over the period of post global financial crisis.
format Article
author Kamarudin, Fakarudin
Sufian, Fadzlan
Md Nassir, Annuar
spellingShingle Kamarudin, Fakarudin
Sufian, Fadzlan
Md Nassir, Annuar
Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks
author_facet Kamarudin, Fakarudin
Sufian, Fadzlan
Md Nassir, Annuar
author_sort Kamarudin, Fakarudin
title Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks
title_short Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks
title_full Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks
title_fullStr Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks
title_full_unstemmed Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks
title_sort global financial crisis, ownership and bank profit efficiency in the bangladesh's state owned and private commercial banks
publisher Facultad de Contaduría y Administración, Universidad Nacional Autónoma de México
publishDate 2016
url http://psasir.upm.edu.my/id/eprint/56382/1/Global%20financial%20crisis%2C%20ownership%20and%20bank%20profit%20efficiency%20in%20the%20Bangladesh%27s%20state%20owned%20and%20private%20commercial%20banks.pdf
http://psasir.upm.edu.my/id/eprint/56382/
http://www.sciencedirect.com/science/article/pii/S0186104216300444
_version_ 1643836174526054400
score 13.211869

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