Efficiency of banks in Southeast Asia: Indonesia, Malaysia, Philippines and Thailand
Abstract
Purpose
The purpose of this paper is to use the concept of meta-frontiers data envelopment analysis (DEA) to compare the technical efficiencies of banks in selected Southeast Asia countries in the periods of 1998-2012.
Design/methodology/approach
The authors evaluate bank efficiency in Indonesia, Malaysia, Thailand and the Philippines by means of DEA, and the authors employ a meta-frontiers approach to calculate efficiency scores in a cross-country setting.
Findings
The analysis shows that even there are some similarities in the process of financial reforms undertaken in the selected countries, the observed efficiency levels of banks vary substantially across the market.
Originality/value
It is crucial to take into consideration of different technologies in explaining the efficiency differences.
Keywords
Acknowledgements
This research paper is funded by Universiti Utara Malaysia Research Grant (SO Code: 13334).
Citation
Mohd Khan, S.J., Samsudin, S. and Islam, R. (2017), "Efficiency of banks in Southeast Asia: Indonesia, Malaysia, Philippines and Thailand", International Journal of Social Economics, Vol. 44 No. 12, pp. 2302-2312. https://doi.org/10.1108/IJSE-01-2016-0020
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited