Financial disruptions and bank productivity growth: evidence from the Malaysian experience

Financial disruptions and bank productivity growth: evidence from the Malaysian experience

This paper examines, for the first time, the productivity of the Malaysian banking sector around the Asian financial crisis 1997. The non-parametric Malmquist Productivity Index (MPI) is used to compute individual banks’ productivity levels. We find that the Malaysian banking sector has exhibited pr...

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Main Author: Sufian, Fadzlan
Format: Article
Language:English
Published: Taylor & Francis 2009
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/5243/
http://irep.iium.edu.my/5243/
http://irep.iium.edu.my/5243/1/44302816.pdf
id iium-5243
recordtype eprints
spelling iium-52432011-12-06T08:47:41Z http://irep.iium.edu.my/5243/ Financial disruptions and bank productivity growth: evidence from the Malaysian experience Sufian, Fadzlan HG1501 Banking This paper examines, for the first time, the productivity of the Malaysian banking sector around the Asian financial crisis 1997. The non-parametric Malmquist Productivity Index (MPI) is used to compute individual banks’ productivity levels. We find that the Malaysian banking sector has exhibited productivity regress due to the decline in efficiency. The results seem to suggest that the domestic banks have exhibited productivity progress attributed to technological change, while the foreign banks have exhibited productivity regress due to efficiency decline. We find that the large banks tend to experience productivity growth attributed to technological progress, while the small banks tend to experience productivity decline due to technological regress. The empirical results suggest that the small banks with its limited capabilities are at a disadvantage compared with their larger counterparts in terms of technological advancements, thus, rejecting the divisibility theory. Taylor & Francis 2009-09 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5243/1/44302816.pdf Sufian, Fadzlan (2009) Financial disruptions and bank productivity growth: evidence from the Malaysian experience. International Economic Journal, 23 (3). pp. 339-369. ISSN 1016-8737 (print); 1743-517X (online) http://www.tandf.co.uk/journals/titles/10168737.asp
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Sufian, Fadzlan
Financial disruptions and bank productivity growth: evidence from the Malaysian experience
description This paper examines, for the first time, the productivity of the Malaysian banking sector around the Asian financial crisis 1997. The non-parametric Malmquist Productivity Index (MPI) is used to compute individual banks’ productivity levels. We find that the Malaysian banking sector has exhibited productivity regress due to the decline in efficiency. The results seem to suggest that the domestic banks have exhibited productivity progress attributed to technological change, while the foreign banks have exhibited productivity regress due to efficiency decline. We find that the large banks tend to experience productivity growth attributed to technological progress, while the small banks tend to experience productivity decline due to technological regress. The empirical results suggest that the small banks with its limited capabilities are at a disadvantage compared with their larger counterparts in terms of technological advancements, thus, rejecting the divisibility theory.
format Article
author Sufian, Fadzlan
author_facet Sufian, Fadzlan
author_sort Sufian, Fadzlan
title Financial disruptions and bank productivity growth: evidence from the Malaysian experience
title_short Financial disruptions and bank productivity growth: evidence from the Malaysian experience
title_full Financial disruptions and bank productivity growth: evidence from the Malaysian experience
title_fullStr Financial disruptions and bank productivity growth: evidence from the Malaysian experience
title_full_unstemmed Financial disruptions and bank productivity growth: evidence from the Malaysian experience
title_sort financial disruptions and bank productivity growth: evidence from the malaysian experience
publisher Taylor & Francis
publishDate 2009
url http://irep.iium.edu.my/5243/
http://irep.iium.edu.my/5243/
http://irep.iium.edu.my/5243/1/44302816.pdf
first_indexed 2023-09-18T20:13:44Z
last_indexed 2023-09-18T20:13:44Z
_version_ 1777407648879083520

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