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Bank Efficiency amid Foreign Entry :, Evidence from the Central American Region, Torsten Wezel

This paper investigates the efficiency of domestic and foreign banks in the Central American region during 2002-07. Using two main empirical approaches, Data Envelopment Analysis and Stochastic Frontier Analysis, the paper finds that foreign banks are not necessarily more efficient than their domestic counterparts. If anything, the regional banks that were acquired by global banks in a wave of acquisitions during 2005-07 can keep up with the local institutions. The efficiency of these acquired banks, however, is shown to have dropped during the acquisition year, recovering only slightly thereafter. Finally, it is important to account for the environment in which banks operate, as country-, sector- and firm-specific characteristics are found to have a considerable influence on bank efficiency
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. Market Share of Foreign-Owned Banks; II. Related Literature; III. Bank Efficiency Based on Data Envelopment Analysis; A. Methodology; 2. Technical and Allocative Efficiency; B. Data and Variables; 1. DEA Estimation Results for 2007; C. Results of the DEA Procedure; D. Multi-year Changes in Factor Productivity; 2. Productivity Developments Computed Using Malmquist Indices; E. Pre-/Post-Acquisition Performance; 3. Absolute Productivity of Acquired Banks During Takeover Phase
Literary Form
non fiction
"April 2010."
Physical Description
1 online resource (57 p.)
Specific Material Designation
Form Of Item

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