Effectiveness of the Global Banking System in 2010: A Data Envelopment Analysis approach

Thanh, Ngo (2011): Effectiveness of the Global Banking System in 2010: A Data Envelopment Analysis approach. Published in: Chinese Business Review , Vol. 10, No. 11 (November 2011): pp. 961-973.

Abstract

The current crisis has revealed the weaknesses of the global financial in general and its banking system in particular, put forward a requirement for assessing the effectiveness and stability of the banking sectors across countries. Based on available data from 64 countries over the world, the author tried to evaluate the effectiveness of the banking sectors in those countries through the view point of the data envelopment analysis approach to define how the global banking systems is under the effect of the current crisis. Findings from the research showed that banking systems in advanced economies are still more effective than in developing countries. Moreover, it explained the effect of the current financial crisis, the role of public finance (and the government), and the development of the (privately) commercial banks to the effectiveness of the banking sectors. The research also explained some determinants that can affect the effectiveness of the banking system, including inflation, bank concentration, and level of economic development.

• Item Type: MPRA Paper
• Language: English
• Keywords: data envelopment analysis, effectiveness, efficiency, banking, cross countries
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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