Bank modelling methodologies: A comparative non-parametric analysis of efficiency in the Japanese banking sector

By Leigh Drake, Maximilian J. B. Hall, Richard Simper. 2009

159 citations recorded by the source corpus.

This study examines the efficiency of the Japanese banking system utilising the slacks-based measure. In addition, we also extend the comparative bank modelling methodology literature by utilising both the intermediation and production approaches, together with the profit/revenue-based approach, proposed in [Berger, A.N., Mester, L.J., 2003. Explaining the dramatic changes in performance of US banks: technological change, deregulation, and dynamic changes in competition. J. Financial Intermed. 12, 57-95]. We find that, across the three methodologies, there are marked differences in: mean efficiency scores; the dispersion of efficiency scores; and the ranking of banks and bank sectors. Hence, the results demonstrate a very high degree of modelling dependence, which has importance in the context of policy responses.

Subfields: Accounting, Finance, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/1f2c9e7a7850316c4e5bffccad71056e41023ae1

Citations in the corpus

• The profitability of banks in Japan (2010, unknown): “Drake et al. (2009) examine three nonparametric methodologies to examine the technical efficiency of banks over the period 1995 to 2002.”