Banking efficiency, ownership types, and operations: A quasi-natural experiment of conventional and Islamic banks

IF 2.9 3区 经济学 Q1 ECONOMICS
Mohan Fonseka , Omar Al Farooque
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Abstract

This study examines the banking efficiency of different ownership types and operations in an emerging market in South Asia. It further explores the moderating effect of Islamic banking operations on such relationships. The effects of banking regulatory developments on banking efficiency are also examined through a quasi-natural experiment approach. Using 533 banking unit observations of banks for FY 2002/2003 to 2017/2018 period, and applying the data envelopment analysis (DEA) method for banking efficiency and Tobit regression, the findings document that the banking efficiency of the state-owned conventional banks outperforms privately-owned domestic banks, as well as conventional domestically owned banks (state-owned and privately-owned banks) outperforms the foreign-owned banks. Again, the banking efficiency outperformance of the conventional banking operation over the Islamic banking operation is found. However, the outperformance of conventional state-owned banks diminishes with the moderation of Islamic banking operations. Additionally, the quasi-natural experiment with difference-in-difference (DID) regression result reveals that the banking efficiency of Islamic banks and conventional state-owned banks has improved during the post-regulatory period and reduced the efficiency gap between them (in favor of conventional banks). However, the banking efficiency of conventional state-owned banks offering Islamic banking services has diminished in the post-regulatory period. These findings remain robust during the global financial crisis (GFC) and non-GFC periods. Overall, the results add a new dimension to the banking efficiency and regulatory development research for the policymakers and regulators in the financial services sector.

银行效率、所有权类型和运营:传统银行和伊斯兰银行的准自然实验
本研究探讨了南亚一个新兴市场中不同所有权类型和业务的银行效率。研究还进一步探讨了伊斯兰银行业务对这种关系的调节作用。此外,还通过准自然实验方法研究了银行监管发展对银行效率的影响。利用 2002/2003 财年至 2017/2018 财年的 533 个银行单位观察数据,运用数据包络分析法(DEA)和 Tobit 回归法对银行效率进行分析,结果表明,国有传统银行的银行效率优于私有国内银行,传统国内银行(国有银行和私有银行)的银行效率优于外资银行。同样,传统银行业务的银行效率也优于伊斯兰银行业务。然而,随着伊斯兰银行业务的缓和,传统国有银行的优越性会减弱。此外,用差分回归法进行的准自然实验结果显示,在后监管时期,伊斯兰银行和传统国有银行的银行效率都有所提高,缩小了两者之间的效率差距(有利于传统银行)。然而,在后监管时期,提供伊斯兰银行服务的传统国有银行的银行效率有所下降。在全球金融危机(GFC)和非全球金融危机期间,这些研究结果依然稳健。总之,研究结果为金融服务领域的政策制定者和监管者提供了银行效率和监管发展研究的新视角。
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来源期刊
CiteScore
6.00
自引率
2.90%
发文量
118
期刊介绍: The Quarterly Review of Economics and Finance (QREF) attracts and publishes high quality manuscripts that cover topics in the areas of economics, financial economics and finance. The subject matter may be theoretical, empirical or policy related. Emphasis is placed on quality, originality, clear arguments, persuasive evidence, intelligent analysis and clear writing. At least one Special Issue is published per year. These issues have guest editors, are devoted to a single theme and the papers have well known authors. In addition we pride ourselves in being able to provide three to four article "Focus" sections in most of our issues.
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