Post-crisis cost efficiency of Jamaican banks

• Autores: Jenifer Daley, Kent Matthews, Tiantian Zhang
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 23, Nº. 19-21, 2013, págs. 1599-1607
• Idioma: inglés
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• Resumen

  • Deregulation, re-regulation and continuing globalization embody an imperative that banks increase efficiency in order to survive. We employ the Simar-Wilson (2007) two-step double bootstrap Data Envelopment Analysis (DEA) method to measure whether cost efficiency among Jamaican banks has improved between 1998 and 2009 following a number of post-crisis responses aimed at strengthening and improving the sector. Efficiency is extracted from a meta-frontier construction for the full sample period. In addition, we conduct tests for unconditional ?-convergence and ?-convergence; overall, the results suggest that there has been a tendency towards improvement in bank efficiency levels for the industry as a whole, but there is also evidence that foreign banks show a higher trend improvement in efficiency.