Determinants of bank efficiency: evidence from the Latin American banking industry

Autores
Jiménez Hernandez, Ignacio; Palazzo, Gabriel Martín; Sáez Fernández, Francisco Javier
Año de publicación
2019
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
Purpose: The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm). Design/methodology/approach: In a first stage, data envelopment analysis (DEA) and conditional efficiency analysis techniques are used to assess the relative efficiency level of 409 banks for the 2014-2016 period. The conditional efficiency approach considers environmental variables (that are beyond the manager’s control), which could influence the shape and the level of the boundary of the attainable set. In the second stage, the resulting conditional efficiency scores are correlated with internal variables (those that are under the manager’s control), which might affect the distribution of the inefficiencies. For this purpose, an econometric approach developed by Simar and Wilson (2007) is used. Findings: First stage scores reveal the heterogeneity of average efficiency within the region. Regarding the factors that may explain the differences in performance in the LatAm banking sector, the results allow us to state that certain internal variables such as bank size, the ratio of loans to total assets and the ratio of non-performing loans show the expected relationship to efficiency, in line with much of the previous literature. Originality/value: This is the first time that conditional efficiency and Simar and Wilson (2007) approaches have been applied at the same time to analyse the LatAm banking industry.
Fil: Jiménez Hernandez, Ignacio. Universidad de Granada; España
Fil: Palazzo, Gabriel Martín. Centro de Estudios de Estado y Sociedad; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Universidad de Buenos Aires; Argentina. Universidad de Buenos Aires. Facultad de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina
Fil: Sáez Fernández, Francisco Javier. Universidad de Granada; España
Materia
Commercial banks
Data envelopment analysis
Conditional efficiency
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/175454
Acceder
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network_name_str CONICET Digital (CONICET)
spelling Determinants of bank efficiency: evidence from the Latin American banking industryJiménez Hernandez, IgnacioPalazzo, Gabriel MartínSáez Fernández, Francisco JavierCommercial banksData envelopment analysisConditional efficiencyhttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5Purpose: The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm). Design/methodology/approach: In a first stage, data envelopment analysis (DEA) and conditional efficiency analysis techniques are used to assess the relative efficiency level of 409 banks for the 2014-2016 period. The conditional efficiency approach considers environmental variables (that are beyond the manager’s control), which could influence the shape and the level of the boundary of the attainable set. In the second stage, the resulting conditional efficiency scores are correlated with internal variables (those that are under the manager’s control), which might affect the distribution of the inefficiencies. For this purpose, an econometric approach developed by Simar and Wilson (2007) is used. Findings: First stage scores reveal the heterogeneity of average efficiency within the region. Regarding the factors that may explain the differences in performance in the LatAm banking sector, the results allow us to state that certain internal variables such as bank size, the ratio of loans to total assets and the ratio of non-performing loans show the expected relationship to efficiency, in line with much of the previous literature. Originality/value: This is the first time that conditional efficiency and Simar and Wilson (2007) approaches have been applied at the same time to analyse the LatAm banking industry.Fil: Jiménez Hernandez, Ignacio. Universidad de Granada; EspañaFil: Palazzo, Gabriel Martín. Centro de Estudios de Estado y Sociedad; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Universidad de Buenos Aires; Argentina. Universidad de Buenos Aires. Facultad de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; ArgentinaFil: Sáez Fernández, Francisco Javier. Universidad de Granada; EspañaEmerald Group Holdings Ltd.2019-10info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/175454Jiménez Hernandez, Ignacio; Palazzo, Gabriel Martín; Sáez Fernández, Francisco Javier; Determinants of bank efficiency: evidence from the Latin American banking industry; Emerald Group Holdings Ltd.; Applied Economic Analysis; 27; 81; 10-2019; 184-2062632-7627CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.emerald.com/insight/content/doi/10.1108/AEA-09-2019-0027/full/htmlinfo:eu-repo/semantics/altIdentifier/doi/10.1108/AEA-09-2019-0027info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-03T09:48:12Zoai:ri.conicet.gov.ar:11336/175454instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-03 09:48:12.539CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Determinants of bank efficiency: evidence from the Latin American banking industry
title Determinants of bank efficiency: evidence from the Latin American banking industry
spellingShingle Determinants of bank efficiency: evidence from the Latin American banking industry
Jiménez Hernandez, Ignacio
Commercial banks
Data envelopment analysis
Conditional efficiency
title_short Determinants of bank efficiency: evidence from the Latin American banking industry
title_full Determinants of bank efficiency: evidence from the Latin American banking industry
title_fullStr Determinants of bank efficiency: evidence from the Latin American banking industry
title_full_unstemmed Determinants of bank efficiency: evidence from the Latin American banking industry
title_sort Determinants of bank efficiency: evidence from the Latin American banking industry
dc.creator.none.fl_str_mv Jiménez Hernandez, Ignacio
Palazzo, Gabriel Martín
Sáez Fernández, Francisco Javier
author Jiménez Hernandez, Ignacio
author_facet Jiménez Hernandez, Ignacio
Palazzo, Gabriel Martín
Sáez Fernández, Francisco Javier
author_role author
author2 Palazzo, Gabriel Martín
Sáez Fernández, Francisco Javier
author2_role author
author
dc.subject.none.fl_str_mv Commercial banks
Data envelopment analysis
Conditional efficiency
topic Commercial banks
Data envelopment analysis
Conditional efficiency
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv Purpose: The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm). Design/methodology/approach: In a first stage, data envelopment analysis (DEA) and conditional efficiency analysis techniques are used to assess the relative efficiency level of 409 banks for the 2014-2016 period. The conditional efficiency approach considers environmental variables (that are beyond the manager’s control), which could influence the shape and the level of the boundary of the attainable set. In the second stage, the resulting conditional efficiency scores are correlated with internal variables (those that are under the manager’s control), which might affect the distribution of the inefficiencies. For this purpose, an econometric approach developed by Simar and Wilson (2007) is used. Findings: First stage scores reveal the heterogeneity of average efficiency within the region. Regarding the factors that may explain the differences in performance in the LatAm banking sector, the results allow us to state that certain internal variables such as bank size, the ratio of loans to total assets and the ratio of non-performing loans show the expected relationship to efficiency, in line with much of the previous literature. Originality/value: This is the first time that conditional efficiency and Simar and Wilson (2007) approaches have been applied at the same time to analyse the LatAm banking industry.
Fil: Jiménez Hernandez, Ignacio. Universidad de Granada; España
Fil: Palazzo, Gabriel Martín. Centro de Estudios de Estado y Sociedad; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Universidad de Buenos Aires; Argentina. Universidad de Buenos Aires. Facultad de Ciencias Económicas; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina
Fil: Sáez Fernández, Francisco Javier. Universidad de Granada; España
description Purpose: The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm). Design/methodology/approach: In a first stage, data envelopment analysis (DEA) and conditional efficiency analysis techniques are used to assess the relative efficiency level of 409 banks for the 2014-2016 period. The conditional efficiency approach considers environmental variables (that are beyond the manager’s control), which could influence the shape and the level of the boundary of the attainable set. In the second stage, the resulting conditional efficiency scores are correlated with internal variables (those that are under the manager’s control), which might affect the distribution of the inefficiencies. For this purpose, an econometric approach developed by Simar and Wilson (2007) is used. Findings: First stage scores reveal the heterogeneity of average efficiency within the region. Regarding the factors that may explain the differences in performance in the LatAm banking sector, the results allow us to state that certain internal variables such as bank size, the ratio of loans to total assets and the ratio of non-performing loans show the expected relationship to efficiency, in line with much of the previous literature. Originality/value: This is the first time that conditional efficiency and Simar and Wilson (2007) approaches have been applied at the same time to analyse the LatAm banking industry.
publishDate 2019
dc.date.none.fl_str_mv 2019-10
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/175454
Jiménez Hernandez, Ignacio; Palazzo, Gabriel Martín; Sáez Fernández, Francisco Javier; Determinants of bank efficiency: evidence from the Latin American banking industry; Emerald Group Holdings Ltd.; Applied Economic Analysis; 27; 81; 10-2019; 184-206
2632-7627
CONICET Digital
CONICET
url http://hdl.handle.net/11336/175454
identifier_str_mv Jiménez Hernandez, Ignacio; Palazzo, Gabriel Martín; Sáez Fernández, Francisco Javier; Determinants of bank efficiency: evidence from the Latin American banking industry; Emerald Group Holdings Ltd.; Applied Economic Analysis; 27; 81; 10-2019; 184-206
2632-7627
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.emerald.com/insight/content/doi/10.1108/AEA-09-2019-0027/full/html
info:eu-repo/semantics/altIdentifier/doi/10.1108/AEA-09-2019-0027
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Emerald Group Holdings Ltd.
publisher.none.fl_str_mv Emerald Group Holdings Ltd.
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 13.13397

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