A Comparative Analysis of Operational Efficiency between Chinese and Indian Commercial Banks
DOI:
https://doi.org/10.29015/cerem.535Słowa kluczowe:
Data envelopment analysis, Commercial banks, China, IndiaAbstrakt
Aim:The objective of this paper is to make comparative analysis on operational efficiency between Chinese and Indian commercial banks (CBs).
Design / Research methods: Following the previous scholars’ study, two models with different sets of input and output variables have been used to show how efficiency scores vary with change in inputs and outputs. The efficiency scores are measured by using data envelopment analysis (DEA) approach.
Conclusions / findings: The mean technical efficiency score of Chinese CBs is always relatively higher than the corresponding score of Indian CBs in 2012-2013, respectively. In terms of technical efficiency and pure technical efficiency, the performance of foreign banks in China is always relatively lower than that of foreign banks in India.
Originality / value of the article: While many similar studies have evaluated the performance of banking industries in different countries, very few studies have evaluated the performance of banking sectors between Chinese and Indian economies. The paper would be of interest for OR scholars and practitioners in financial industry.
Implications of the research (if applicable): The next step of this study could collect more samples and use Malmquist index method to conduct further study on efficiency, efficiency changing and productivity, in order to conduct further competitive power analysis on both of banking industries of China and India.
Bibliografia
Avkiran N.K. (1999), The evidence of efficiency gains. The role of mergers and the benefits to the public, „Journal of Banking and Finance”, vol. 23 no. 7, pp. 991-1013.
Banker R.D., Charnes A., Cooper W.W. (1984), Some models for estimating technical and scale inefficiencies in Data Envelopment Analysis, „Management Science”, vol. 30 no. 9, pp. 1078-1092.
Charnes, A., Cooper W.W., Rhodes E. (1978), Measuring the efficiency of decision making units, „European Journal of Operational Research”, vol. 2 no. 6, pp. 429-444.
Cooper W.W., Seiford L.M., Tone K. (1999), Data Envelopment Analysis, a comprehensive text with models, applications, references and DEA-solver software, Kluwer Academic Publishers, Boston.
China Banking Regulatory Commission (2014), Annual Report 2013, China CITIC Press, Beijing.
Emrouznejad A., Anouze A.L. (2010), Data Envelopment Analysis with classification and regression tree. A case of banking efficiency, „Expert Systems”, vol. 27 no. 4, pp. 231-246.
Emrouznejad A., De Witte K. (2010), COOPER-framework. A unified process for non-parametric projects, „European Journal of Operational Research”, vol. 207 no. 3, pp. 1573-1586.
Emrouznejad A., Yang G. (2018), A survey and analysis of the first 40 years of scholarly literature in DEA: 1978-2016, „Journal of Socio-Economic Planning Sciences”, vol. 61 no. 1, pp. 1-5.
Hada S.S., Tamang G. (2014), Frontier analysis of Nepalese commercial banks. DEA Approach, „Journal of Mathematics and System Science”, no. 4, pp. 675-682.
Hada S.S., Zhu N., Tamang G. (2017), Frontier analysis of Nepalese and Chinese commercial banks. DEA approach, „International Journal of Operational Research – Nepal”, no. 1, pp. 39-46.
Sathye M. (2003), Efficiency of banks in a developing economy. The case of India, „European Journal of Operational Research”, vol. 148 no. 3, pp. 662-671.
Reserve Bank of India (2014), Financial stability report (Including trend and progress of banking in India 2013-2014), https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0FLTP577BF4E172064685A26A73A6BC9210EC.PDF [03.09.2018].
Wanke P.F., Barros C.P., Emrouznejad A. (2016), Assessing productive efficiency of banks using integrated Fuzzy-DEA and bootstrapping. A case of Mozambican banks, „European Journal of Operational Research”, vol. 249 no. 1, pp. 378-389.
Wanke P.F., Barros C.P., Emrouznejad A. (2017), A comparison between stochastic DEA and Fuzzy DEA approaches. Revisiting efficiency in Angolan banks, „RAIRO-Operations Research”, vol. 52 no. 1, pp. 285-303.
Zhu N., Li J., Wu Q., Cheng W.L. (2012), On productive efficiency and TFP changes of Chinese commercial banks, „Economist (Jing Ji Xue Jia)”, no. 9, pp. 56-61 (in Chinese).
Zhu N., Liu Y., Emrouznejad A., Huang Q. (2017), An allocation Malmquist index with an application in the China securities industry, „Operational Research – An International Journal”, vol. 17 no. 2, pp. 669-691.
Zhu N., Zhuo X, Dong Y. (2004), A case study of the efficiency of China’s national commercial banks and the reform strategy, „Management World”, no. 2, pp. 18-26 (in Chinese).
Pobrania
Opublikowane
Numer
Dział
Licencja
Autor przenosi nieodpłatnie na Wyższą Szkołę Bankową we Wrocławiu , bez ograniczeń terytorialnych, majątkowe prawa autorskie do tego utworu w rozumieniu ustawy z dnia 4 lutego 1994 roku o prawie autorskim i prawach pokrewnych ( Dz.U. 1994, Nr 24, poz. 83 ze zm. )na zasadzie wyłączności, tj. prawo do:
a) wyłącznego używania i wykorzystania utworu w dowolnej działalności przez Wyższą Szkołę Bankową we Wrocławiu, w szczególności w działalność Biblioteki Cyfrowej uruchomionej przez Wyższą Szkołę Bankową we Wrocławiu
b) wytwarzania, utrwalania i zwielokrotniania egzemplarzy utworów wszelkimi technikami, w tym techniką drukarską, reprograficzną, zapisu magnetycznego oraz techniką cyfrową, w szczególności ich zwielokrotniania poprzez dokonywanie zapisów na płytach typu CD,
c) zamieszczenia wybranych fragmentów utworu w celach promocyjnych w publikacjach, materiałach promocyjnych, w sieci Internet oraz sieciach wewnętrznych typu Intranet Wyższej Szkoły Bankowej we Wrocławiu,
d) wprowadzania utworu do pamięci komputera Wyższej Szkoły Bankowej we Wrocławiu,
e) kopiowania i powielania utworu w technologiach fotomechanicznych lub innych znanych w dniu zawarcia umowy (fotokopie, kserokopie itp.),
f) przetworzenia dzieła na formę elektroniczną i nieograniczonego rozpowszechniania w sieci Internet.