Dissertation
Competition, efficiency and Bank Stability – an Empirical study of the East Asian commercial banks
University of the Sunshine Coast, Queensland
Doctor of Philosophy, University of the Sunshine Coast
2017
DOI:
https://doi.org/10.25907/00166
Abstract
This thesis focuses on banking sector efficiency, competition and stability in East Asia. Since the late 1980s, the banking systems of East Asia have gone through significant changes that have led to improvements in the services provided. Despite these improvements, the Asian financial crisis of 1997-98 and the global financial crisis (GFC) of 2008-2009 heightened concerns, from both researchers and policy makers, about the stability of East Asian financial markets. Using data from 2004 to 2014 and employing panel data regression techniques, I examine the effect of competition and efficiency on bank stability in the East Asian economies. The thesis starts with measurement of cost efficiency, competition, and stability of the commercial banks in East Asia. Cost efficiency is estimated using both Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA). Unlike most existing studies, in this research I have used the sub-sampling bootstrap method to correct for the bias involved in the measurement of cost efficiency using DEA. The efficiency scores estimated by SFA were found to be higher than those estimated by DEA. Spearman's rank order correlation coefficient between the SFA and DEA scores suggests a moderate degree of consistency in the ranking of banks. Three alternative specifications of Lerner indices (the conventional, the efficiency-adjusted and the funding-adjusted Lerner indices) were used to measure the level of competition. The conventional Lerner indices estimates were found to be much lower than the efficiency-adjusted and funding-adjusted Lerner indices. Z-scores and risk-adjusted returns were used as indicators of bank stability. The empirical results suggest that the Vietnamese banking system is the least stable.
Details
- Title
- Competition, efficiency and Bank Stability – an Empirical study of the East Asian commercial banks
- Authors
- Hien Thu Phan
- Contributors
- Sajid Anwar (Supervisor)
- Awarding institution
- University of the Sunshine Coast
- Degree awarded
- Doctor of Philosophy
- Publisher
- University of the Sunshine Coast, Queensland
- DOI
- 10.25907/00166
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99451398102621
- Output Type
- Dissertation
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