Post Asian crisis experience on bank efficiency and competition

• Main Authors: Mohd Khan, Shazida Jan, Abd. Wahab, Norazlina
• Format: Conference or Workshop Item
• Language: English
• Published: 2013
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/19167/1/ICEFMO%202013%20408-423.pdf; http://repo.uum.edu.my/19167/
• Institution: Universiti Utara Malaysia

The transformation in Asian banking came with the aim to recover and improve the banking system performance and soundness.The structural changes in SEA has improved the region banking industry performances and brought significant effects through the regulatory changes as it spur a trend towards consolidation, resulting in the recent wave of mergers and acquisitions.This study investigates the impact of post crisis (1997 – 2005) banking reform on competition and performance of the banking system.Competition level is assessed by employing Panzar and Rosse methodology, while the efficiency is evaluated using Data Envelopment Analysis (DEA) that adjusted to allow slack or surpluses due to the environment variables.Our analysis shows that the region has successfully transformed the banking sectors as the efficiency indicates score displays positive changes.However the relation between efficiency and competition may not be a straightforward impact.