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 in 2008. This study collected and analyzed the data of 247 banks of twelve developed and developing economies in East Asia and Pacific area over the 2003-2012 period to find the empirical evidence for that relationships. The analyzing process went through two main stages: Measuring banks cost efficiency by applying Stochastic Frontier Analysis and examining the effects of risks on 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 |
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| Title of host publication | Proceedings of the 27th Australasian Finance and Banking Conference: 16-18 December 2014, Shangri-la Hotel, Sydney, Australia |
| Publisher | Social Science Research Network |
| Number of pages | 42 |
| Publication status | Published - 2014 |
| Event | Australasian Finance and Banking Conference - Duration: 16 Dec 2014 → … |
Conference
| Conference | Australasian Finance and Banking Conference |
|---|---|
| Period | 16/12/14 → … |
Keywords
- banks and banking
- costs
- cost efficiency
- risk factors
- East Asia
- Pacific Area