Risk-adjusted efficiency and innovation: an examination of systematic difference and convergence among BRIC banks

IF 2.8 2区经济学 Q1 ECONOMICS

Economic Systems Pub Date : 2024-03-01 DOI:10.1016/j.ecosys.2023.101167

Thanh Nguyen , Son Nghiem , Abhishek Singh Bhati

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引用次数: 0

Abstract

We argue that technological progress and technology diffusion is improving innovation the banking industry, leading to a potential steady-state equilibrium in operational efficiency and innovation across banks with similar characteristics. Using the latest meta-frontier method, this study examined BRIC banks during the period from 2000 to 2020. We found that Indian and Brazilian banks are more innovative in reducing costs, whereas Indian and Chinese banks are more cost efficient. Chinese, Russian, Indian, and Brazilian banks rank first to fourth in profit efficiency and profit-making innovation, respectively. Risk-taking boosts group cost and profit efficiencies and profit-making innovation but reduces cost-reducing innovation in each country. BRIC banks diverged in innovation during the analysis period but slowly converged after the 2008 crisis. Reform policies, adoption of production technology, formulating regulations and investing in human capital and technologies are crucial for less efficient and innovative banks to catch-up with frontier banks.

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风险调整效率与创新：金砖四国银行的系统性差异与趋同性研究

我们认为，技术进步和技术扩散正在改善银行业的创新，从而使具有相似特征的银行在运营效率和创新方面达到潜在的稳态均衡。本研究采用最新的元前沿方法，对 2000 年至 2020 年期间的金砖四国银行进行了研究。我们发现，印度和巴西的银行在降低成本方面更具创新性，而印度和中国的银行则更具成本效率。中国、俄罗斯、印度和巴西银行在利润效率和盈利创新方面分别排名第一至第四。在每个国家，承担风险会提高集团的成本和利润效率以及盈利创新能力，但会降低降低成本的创新能力。在分析期间，金砖四国银行在创新方面存在差异，但在 2008 年危机后慢慢趋同。改革政策、采用生产技术、制定法规以及投资人力资本和技术对于效率较低、创新能力较弱的银行赶超前沿银行至关重要。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economic Systems ECONOMICS-

CiteScore

4.90

自引率

0.00%

发文量

审稿时长

48 days

期刊介绍： Economic Systems is a refereed journal for the analysis of causes and consequences of the significant institutional variety prevailing among developed, developing, and emerging economies, as well as attempts at and proposals for their reform. The journal is open to micro and macro contributions, theoretical as well as empirical, the latter to analyze related topics against the background of country or region-specific experiences. In this respect, Economic Systems retains its long standing interest in the emerging economies of Central and Eastern Europe and other former transition economies, but also encourages contributions that cover any part of the world, including Asia, Latin America, the Middle East, or Africa.