Since 2014
Intermediation and Profit-oriented Efficiency Evaluation of Nepalese Commercial Banks
Entrepreneurship and Innovation Management Journal
View Archive Info| Field | Value | |
| Title |
Intermediation and Profit-oriented Efficiency Evaluation of Nepalese Commercial Banks
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| Creator |
Jha, Suvita; School of Management, Harbin Institute of Technology, Harbin
Hui, Xiaofeng; School of Management, Harbin Institute of Technology, Harbin Sun, Baiqing; School of Management, Harbin Institute of Technology, Harbin |
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| Subject |
Commercial banking industry, DEA model, Technical efficiency, Nepal
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| Description |
The level of efficiency of commercial banks is a key driver to the economy and commercial banks themselves to compete with their counters in this competitive global market. In this study, technical efficiencies of Nepalese commercial banks under intermediation approach and profit-oriented approach were evaluated for the period of 2005 to 2010 using inputoriented Data Envelopment Analysis (DEA) model. We found that in terms of the overall mean of the technical efficiency, the intermediation approach provided more efficiency scores than profit-oriented approach. Competition and new technology can all be reasons that banks are performing better as the intermediary function. Comparing the scores for different type of the Nepalese commercial banks based on ownership provided mixed results. Under intermediation approach, joint venture banks were more efficient whereas public sector banks were found more efficient under profit-oriented approach. When comparing the individual banks, Nepal Arab Bank Limited and Standard Charted Bank Limited banks were more efficient under the both approaches. In addition, Agriculture Development Bank Limited, Kumari Bank Limited and Siddhartha Bank Limited were marginally efficient (more than 90%) only under intermediation approach. The study found that the bank with efficient under intermediation approach does not always mean that has better profitability performance.
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| Publisher |
Academy of Business & Scientific Research
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| Contributor |
—
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| Date |
2013-11-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://absronline.org/journals/index.php/eimj/article/view/29
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| Source |
Entrepreneurship and Innovation Management Journal; Vol 1, No 1 (2013): November; pp. 97-104
2311-1836 2310-00079 |
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| Language |
eng
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| Relation |
http://absronline.org/journals/index.php/eimj/article/view/29/27
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| Rights |
Copyright (c) 2014 Entrepreneurship and Innovation Management Journal
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