590
Views
18
CrossRef citations to date
0
Altmetric
Original Articles

Has regulatory reform had any impact on bank efficiency in Indonesia? A two-stage analysis

, &

References

  • Avkiran, N. K. 1999. “The Evidence on Efficiency Gains: The Role of Mergers and the Benefits to the Public.” Journal of Banking & Finance 23 (7): 991–1013. doi:10.1016/S0378-4266(98)00129-0.
  • Banker, R. D., A. Charnes, and W. W. Cooper. 1984. “Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis.” Management Science 30 (9): 1078–1092. doi:10.1287/mnsc.30.9.1078.
  • Barth, J. R., G. Caprio, and R. Levine. 2008. “Bank Regulations Are Changing: For Better or Worse?” Comparative Economic Studies 50 (4): 537–563. doi:10.1057/ces.2008.33.
  • Barth, J. R., C. Lin, M. Yue, J. Seade, and F. M. Song. 2013. “Do Bank Regulation, Supervision and Monitoring Enhance or Impede Bank Efficiency?” Journal of Banking & Finance 37 (8): 2879–2892. doi:10.1016/j.jbankfin.2013.04.030.
  • Berger, A. N., and D. B. Humphrey. 1997. “Efficiency of Financial Institutions: International Survey and Directions for Future Research.” European Journal of Operational Research 98 (2): 175–212. doi:10.1016/S0377-2217(96)00342-6.
  • Bhattacharyya, A., C. A. K. Lovell, and P. Sahay. 1997. “The Impact of Liberalization on the Productive Efficiency of Indian Commercial Banks.” European Journal of Operational Research 98 (2): 332–345. doi:10.1016/S0377-2217(96)00351-7.
  • Bonin, J., I. Hasan, and P. Watchel. 2005. “Bank Performance, Efficiency and Ownership in Transition Countries.” Journal of Banking and Finance 29: 31–53. doi:10.1016/j.jbankfin.2004.06.015.
  • Canhoto, A., and J. Dermine. 2003. “A Note on Banking Efficiency in Portugal, New Vs Old Banks.” Journal of Banking & Finance 27 (11): 2087–2098. doi:10.1016/S0378-4266(02)00316-3.
  • Castellanos, S. G., and J. G. Garza-García. 2013. “Competition and Efficiency in the Mexican Banking Sector.” BBVA Working Paper, Madrid 13/2.
  • Chiu, Y., Y. Chen, and X. Bai. 2011. “Efficiency and Risk in Taiwan Banking: Sbm Super - DEA Estimation.” Applied Economics 43 (5): 587–602. doi:10.1080/00036840802599750.
  • Coelli, T., D. S. Prasada Rao, C. J. O’Donnell, and G. E. Battese. 2005. An Introduction to Efficiency and Productivity Analysis. 2nd ed. New York: Spinger.
  • Das, A., and S. Ghosh. 2006. “Financial Deregulation and Efficiency: An Empirical Analysis of Indian Banks During the Post Reform Period.” Review of Financial Economics 15 (3): 193–221. doi:10.1016/j.rfe.2005.06.002.
  • Delis, M. D., P. Molyneux, and F. Pasiouras. 2011. “Regulations and Productivity Growth in Banking: Evidence from Transition Economies.” Journal of Money, Credit & Banking 43 (4): 735–764. doi:10.1111/j.1538-4616.2011.00393.x.
  • Denizer, C. 2000. “Foreign Entry in Turkey’s Banking Sector, 1980-97.” Policy Research Working Paper, The World Bank 2462.
  • Drake, L., M. J. B. Hall, and R. Simper. 2006. “The Impact of Macroeconomic and Regulatory Factors on Bank Efficiency: A Non-Parametric Analysis of Hong Kong’s Banking System.” Journal of Banking & Finance 30 (5): 1443–1466. doi:10.1016/j.jbankfin.2005.03.022.
  • Elyasiani, E., and S. Mehdian. 1995. “The Comparative Efficiency Performance of Small and Large US Commercial Banks in the Pre-and Post-Deregulation Eras.” Applied Economics 27 (11): 1069–1079. doi:10.1080/00036849500000090.
  • Farrell, M. J. 1957. “The Measurement of Productive Efficiency.” Journal of the Royal Statistical Society. Series A (General) 120 (3): 253–290. doi:10.2307/2343100.
  • Fries, S., and A. Taci. 2005. “Cost Efficiency of Banks in Transition: Evidence from 289 Banks in 15 Post-Communist Countries.” Journal of Banking & Finance 29 (1): 55–81. doi:10.1016/j.jbankfin.2004.06.016.
  • Gardener, E., P. Molyneux, and H. Nguyen-Linh. 2011. “Determinants of Efficiency in South East Asian Banking.” Service Industries Journal 31 (16): 2693–2719. doi:10.1080/02642069.2010.512659.
  • Gilbert, R. A, and P. W. Wilson. 1998. “Effects of Deregulation on the Productivity of Korean Banks.” Journal of Economics and Business 50 (2): 133–155. doi:10.1016/S0148-6195(97)00074-X.
  • Grabowski, R., N. Rangan, and R. Rezvanian. 1994. “The Effect of Deregulation on the Efficiency of US Banking Firms.” Journal of Economics and Business 46 (1): 39–54. doi:10.1016/0148-6195(94)90020-5.
  • Grifell-Tatjé, E., and C. A. K. Lovell. 1996. “Deregulation and Productivity Decline: The Case of Spanish Savings Banks.” European Economic Review 40 (6): 1281–1303. doi:10.1016/0014-2921(95)00024-0.
  • Grigorian, D. A., and V. Manole. 2006. “Determinants of Commercial Bank Performance in Transition: An Application of Data Envelopment Analysis.” Comparative Economic Studies 48 (3): 497–522. doi:10.1057/palgrave.ces.8100129.
  • Hadad, M. D., J. B. Maximilian, K. A. Hall, W. S. Kenjegalieva, R. Satria, and R. Simper. 2008. “Efficiency in Indonesian Banking: Recent Evidence.” Discussion Paper Series; Department of Economics, Loughborough University, UK 2008–2013.
  • Hadad, M. D., J. B. Maximilian, K. A. Hall, W. S. Kenjegalieva, and R. Simper. 2011. “Banking Efficiency and Stock Market Performance: An Analysis of Listed Indonesian Banks.” Review of Quantitative Finance and Accounting, 37: 1–20.
  • Hadad, M. D., J. B. Maximilian, K. A. Hall, W. S. Kenjegalieva, and R. Simper. 2012. “A New Approach to Dealing with Negative Numbers in Efficiency Analysis: An Application to the Indonesian Banking Sector.” Expert Systems with Applications 39 (9): 8212–8219. doi:10.1016/j.eswa.2012.01.145.
  • Halkos, G. E., and N. G. Tzeremes. 2013. “Estimating the Degree of Operating Efficiency Gains from a Potential Bank Merger and Acquisition: A DEA Bootstrapped Approach.” Journal of Banking & Finance 37 (5): 1658–1668. doi:10.1016/j.jbankfin.2012.12.009.
  • Hao, J., W. C. Hunter, and W. K. Yang. 2001. “Deregulation and Efficiency: The Case of Private Korean Banks.” Journal of Economics and Business 53 (2–3): 237–254. doi:10.1016/S0148-6195(00)00051-5.
  • Harada, K., and T. Ito. 2005. “Rebuilding the Indonesian Banking Sector Economic Analysis of Bank Consolidation and Efficiency.” Japan Bank for International Cooperation Institute Review 12: 32–59.
  • Hasan, I., and K. Marton. 2003. “Development and Efficiency of the Banking Sector in a Transitional Economy: Hungarian Experience.” Journal of Banking & Finance 27: 2249–2271. doi:10.1016/S0378-4266(02)00328-X.
  • Havrylchyk, O. 2006. “Efficiency of the Polish Banking Industry: Foreign Versus Domestic Banks.” Journal of Banking & Finance 30 (7): 1975–1996. doi:10.1016/j.jbankfin.2005.07.009.
  • Humphrey, D. B., and L. B. Pulley. 1997. “Banks’ Responses to Deregulation: Profits, Technology, and Efficiency.” Journal of Money, Credit & Banking 29 (1): 73–93. doi:10.2307/2953687.
  • IMF (International Monetary Fund). 2004. Indonesia: Selected Issues. Washington, D.C.: IMF.
  • IMF (International Monetary Fund). 2010. Indonesia: Financial System Stability Assessment. Washington, D.C.: IMF.
  • Isik, I., and M. K. Hassan. 2003a. “Efficiency, Ownership and Market Structure, Corporate Control and Governance in the Turkish Banking Industry.” Journal of Business Finance & Accounting 30 (9/10): 1363–1421. doi:10.1111/j.0306-686X.2003.05533.x.
  • Isik, I., and M. K. Hassan. 2003b. “Financial Deregulation and Total Factor Productivity Change: An Empirical Study of Turkish Commercial Banks.” Journal of Banking & Finance 27 (8): 1455–1485. doi:10.1016/S0378-4266(02)00288-1.
  • Kalirajan, K. P., and R. Salim. 1997. “Economic Reforms and Capacity Realization in Bangladesh: An Empirical Analysis.” Journal of Industrial Economics 45: 387–403. doi:10.1111/1467-6451.00055.
  • Kraft, E., R. Hofler, and J. Payne. 2006. “Privatization, Foreign Bank Entry and Bank Efficiency in Croatia: A Fourier-Flexible Function Stochastic Cost Frontier Analysis.” Applied Economics 38 (17): 2075–2088. doi:10.1080/00036840500427361.
  • Kumar, L., D. Malathy, L. S. Ganesh, and R. Rugimbana. 2010. “Productivity Growth and Efficiency Change in Indian Banking: Technology Effect Vs Catch-up Effect.” Journal of Advances in Management Research 7 (2): 194–218. doi:10.1108/09727981011084995.
  • Lee, B. L., A. C. Worthington, and W. H. Leong. 2010. ““Malmquist Indices of Pre- and Post-Deregulation Productivity, Efficiency and Technological Change in the Singaporean Banking Sector.” The Singapore Economic Review 55 (4): 599–618. doi:10.1142/S0217590810003948.
  • Leightner, J. E., and C. A. K. Lovell. 1998. “The Impact of Financial Liberalization on the Performance of Thai Banks.” Journal of Economics and Business 50 (2): 115–131. doi:10.1016/S0148-6195(97)00073-8.
  • Lensink, R., A. Meesters, and I. Naaborg. 2008. “Bank Efficiency and Foreign Ownership: Do Good Institutions Matter?” Journal of Banking & Finance 32 (5): 834–844. doi:10.1016/j.jbankfin.2007.06.001.
  • Manlagñit, M. C. V. 2011. “Cost Efficiency, Determinants, and Risk Preferences in Banking: A Case of Stochastic Frontier Analysis in the Philippines.” Journal of Asian Economics 22 (1): 23–35. doi:10.1016/j.asieco.2010.10.001.
  • Margono, H., S. C. Sharma, and P. D. Melvin. 2010. “Cost Efficiency, Economies of Scale, Technological Progress and Productivity in Indonesian Banks.” Journal of Asian Economics 21 (1): 53–65. doi:10.1016/j.asieco.2009.06.001.
  • Omar, M., A. M. S. A. Majid, and R. Rulindo. 2007. “Efficiency and Productivity Performance of the National Private Banks in Indonesia.” Gadjah Mada International Journal of Business 9 (1): 1–18.
  • Salim, R., M. Z. Hoquea, and Suyanto. 2010. “The Role of Governance, ICT and Bad Loans in Australian Bank Efficiency: An Empirical Study.” Asia Pacific Journal of Economics & Business 14 (1): 18–36.
  • Sathye, M. 2001. “X-Efficiency in Australian Banking: An Empirical Investigation.” Journal of Banking & Finance 25 (3): 613–630. doi:10.1016/S0378-4266(00)00156-4.
  • Sathye, M. 2003. “Efficiency of Banks in a Developing Economy: The Case of India.” European Journal of Operational Research 148 (3): 662–671. doi:10.1016/S0377-2217(02)00471-X.
  • Sato, Y. 2005. “Bank Restructuring and Financial Institution Reform in Indonesia.” The Developing Economies 43 (1): 91–120. doi:10.1111/j.1746-1049.2005.tb00254.x.
  • Schenk, H. 2006. “Mergers and Concentration Policy.” In International Handbook of Industrial Policy, edited by P. Bianchi and S. Labory, 153–179. Cheltenham: Edward Elgar Publishing.
  • Sealey, C. W., and J. T. Lindley. 1977. “Inputs, Outputs, and a Theory of Production and Cost at Depository Financial Institutions.” Journal of Finance 32 (4): 1251–1266. doi:10.1111/j.1540-6261.1977.tb03324.x.
  • Simar, L., and P. W. Wilson. 1998. “Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models.” Management Science 44 (1): 49–61. doi:10.1287/mnsc.44.1.49.
  • Simar, L., and P. W. Wilson. 2000. “Statistical Inference in Nonparametric Frontier Models: The State of the Art.” Journal of Productivity Analysis 13 (1): 49–78. doi:10.1023/A:1007864806704.
  • Sufian, F. 2009. “Determinants of Bank Efficiency During Unstable Macroeconomic Environment: Empirical Evidence from Malaysia.” Research in International Business and Finance 23 (1): 54–77. doi:10.1016/j.ribaf.2008.07.002.
  • Sufian, F. 2010. “Evolution in the Efficiency of the Indonesian Banking Sector: A DEA Approach.” International Journal of Applied Management Science 2 (4): 388–414. doi:10.1504/IJAMS.2010.036593.
  • Suyanto, and R. Salim. 2013. “Foreign Direct Investment Spillovers and Technical Efficiency: Firm level evidence from Indonesia.” Applied Economics 45: 383–395. doi:10.1080/00036846.2011.605554.
  • Tecles, P. L., and B. M. Tabak. 2010. “Determinants of Bank Efficiency: The Case of Brazil.” European Journal of Operational Research 207 (3): 1587–1598. doi:10.1016/j.ejor.2010.06.007.
  • Williams, J., and N. Nguyen. 2005. “Financial Liberalisation, Crisis, and Restructuring: A Comparative Study of Bank Performance and Bank Governance in South East Asia.” Journal of Banking & Finance 29 (8–9): 2119–2154. doi:10.1016/j.jbankfin.2005.03.011.
  • Zhang, T., and K. Matthews. 2012. “Efficiency Convergence Properties of Indonesian Banks 1992–2007.” Applied Financial Economics 22 (17): 1465–1478. doi:10.1080/09603107.2012.663468.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.