Abstract
The interrelationship between risks and bank efficiency has received much attention in banking literature for years, especially after the Asian financial crisis in 1997 and the global financial crisis (GFC) in 2008. This study collected and analyzed the data of 247 banks of 12 developed and developing economies in East Asia and Pacific area over the 2003-2012 period to find the empirical evidence for that relationships. Using a stochastic frontier approach (SFA) to estimate bank cost efficiency, we found that there are significant relationships among risks, cost efficiency and environmental factors, but they are in different levels when comparing between developed and developing economies, or between the periods of pre- and post-2008 financial crisis.
| Original language | English |
|---|---|
| Article number | 1510719 |
| Pages (from-to) | 1-25 |
| Number of pages | 25 |
| Journal | Cogent Economics & Finance |
| Volume | 6 |
| Issue number | 1 |
| Publication status | Published - 1 Jan 2018 |
Bibliographical note
Publisher Copyright:© 2018, © 2018 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
Open Access - Access Right Statement
©2018 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. You are free to: Share — copy and redistribute the material in any medium or format. Adapt — remix, transform, and build upon the material for any purpose, even commercially. The licensor cannot revoke these freedoms as long as you follow the license terms. Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. No additional restrictions You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.Keywords
- banks and banking
- developed countries
- developing countries
- financial risk management
