The impact of financial liberalization on bank efficiency: evidence from Latin America and Asia

Niels Hermes*, [No Value] Vu Thi Hong Nhung

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

26 Citations (Scopus)

Abstract

This article investigates the impact of financial liberalization on bank efficiency, using data for a sample of over 4000 bank-year observations from ten emerging economies for the period 1991-2000. We use Data Envelopment Analysis (DEA) to calculate bank efficiency at the individual bank level. Bank efficiency measures are then aggregated at the country level to investigate the relationship between financial liberalization and bank efficiency, using a panel least square fixed-effects model. Overall, we find strong support for the positive impact of financial liberalization programmes on bank efficiency.

Original languageEnglish
Article number795170795
Pages (from-to)3351-3365
Number of pages15
JournalApplied Economics
Volume42
Issue number26
DOIs
Publication statusPublished - 2010

Keywords

  • SPANISH SAVINGS BANKS
  • COMMERCIAL-BANKS
  • PRODUCTIVE EFFICIENCY
  • COST EFFICIENCY
  • SCALE
  • DEREGULATION
  • INEFFICIENCIES
  • INSTITUTIONS
  • PERFORMANCE
  • ECONOMIES

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