The impact of the Asian financial crisis on bank efficiency: the 1997 experience of Malaysia and Thailand

Sufian, Fadzlan (2010) The impact of the Asian financial crisis on bank efficiency: the 1997 experience of Malaysia and Thailand. Journal of International Development, 22 (7). pp. 866-889. ISSN 1099-1328(online)

PDF (The Impact of the Asian Financial Crisis on Bank Efficiency: The 1997 Experience of Malaysia and Thailand) - Published Version Restricted to Repository staff only Download (179kB) | Request a copy

Abstract

In the mid-1990s, the East Asian countries experienced severe financial crisis that were followed by deep economic downturns. A variety of methodologies have been used to understand the nature of the Asian financial crisis. However, the impact of the 1997 Asian financial crisis on the efficiency of the financial industry has yet to be studied. By employing the Data Envelopment Analysis (DEA) approach the present study attempts to examine for the first time the impact of the 1997 Asian financial crisis on the efficiency of the Malaysian and Thailand banking sectors, two of the East Asian countries that were severely affected by the crisis. The study focuses on three major approaches vis., intermediation, value added and operating approaches. The results clearly bring forth the high degree of inefficiency in the Malaysian and Thailand banking sectors, particularly a year after the crisis. We .nd that the Malaysian banking sector has exhibited a higher TE levels during the post crisis period under the intermediation and value added approaches, while TE seems to be lower under the operating approach. The empirical findings suggest that the Thailand banking sector has exhibited a lower TE level during the post crisis period under all approaches.

Item Type:	Article (Journal)
Additional Information:	/5193
Uncontrolled Keywords:	Financial crisis, Bank efficiency, Data envelopment analysis, Thailand, Malaysia, Multivariate regression analysis
Subjects:	H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Fadzlan Sufian
Date Deposited:	02 Nov 2011 16:24
Last Modified:	16 Dec 2011 15:32
URI:	http://irep.iium.edu.my/id/eprint/5193

Actions (login required)

View Item