Efficiency of labour use in the Swedish banking industry: a stochastic frontier approach

The purpose of this paper is to analyse the impact of the deregulation of the Swedish banking industry in the mid-1980s, and the consequent banking crisis, on productive efficiency and productivity growth in the industry. An unbalanced panel of Swedish banks is studied over the period, 1984 to 1995. A total of 1275 observations are analysed for 156 banks that were observed for between two and twelve years. We adopt a translog stochastic frontier model to estimate the labour-use requirements in terms of the variables, loans, deposits, guarantees, number of branches and total inventories, together with the year of observation. The inefficiency effects in the labour-use frontier are modelled in terms of the number of branches, total inventories, the type of bank and year of observation. The technical inefficiencies of labour use of Swedish banks were found to be significant, with mean inefficiencies per year estimated to be between about 8 and 15 per cent over the years of study. However, the confidence interval predictions for these inefficiencies were found to be quite wide. First version received: August 1998/Final version received: April 2000     

Efficiency amongst China's banks: a DEA analysis five years after WTO entry

WTO entry in 2001 heralded a new stage in the reform of China's banking sector. With the reality that foreign banks would be extended national treatment by the end of 2006, China's banks faced the imperative to reform in earnest. They began reforms from a variety of different starting points and have pursued a variety of different reform approaches. Five years on, this paper assesses efficiency levels in 11 of China's most prominent banks. The results, obtained using Data Envelopment Analysis (DEA), suggest that differences in efficiency levels are actually quite small. On the one hand, this finding is encouraging because it suggests that few of China's major banks lag behind the pack. On the other hand, it also implies that efficiency levels almost certainly do lag in China's less prominent banks, which together still account for more than 40% of total banking system assets.     

关于提高银行非现场审计效能问题的探讨

伴随着商业银行业务的迅速发展,银行交易信息和管理信息也呈几何级数膨胀。以手工方式、现场核实为主的传统内部审计,对银行信息化后的风险实际上已无法实施及时有效的监控,作为风险控制第三道防线的内部审计工作正面临严峻考验。本文着眼于提高非现场审计效能问题,从银行内部审计的角度,探讨了非现场审计工作的地位、非现场审计的技巧以及非现场审计与现场审计工作的结合,希望对进一步提高非现场审计效能有所裨益。     

The Efficiency of China's Banking Industry and the Determinants

The recent global financial crisis highlights the importance of a sound financial sector for economic development. This paper evaluates the economic efficiency of China's banking industry and investigates the determinants of this efficiency. Our analysis shows that the average economic efficiency of joint-stock commercial banks is highest, followed by the ‘Big Four’ state-owned commercial banks and city commercial banks. The economic inefficiency of these banks during the past 15 years was mainly caused by technical inefficiency, and this technical inefficiency was mainly caused by scale inefficiency. Using the scores of efficiency as dependent variables, the paper also comprehensively studies the impact of (1) the characteristics of individual banks, (2) the characteristics of the whole banking industry and (3) macroeconomic factors on banking efficiency. The results suggest a number of factors that banks can work on to improve efficiency and lend support to deepening reforms in the Chinese banking industry, including regulatory reforms that require capital adequacy in a more strict way, reforms that introduce more competition and, more broadly, reforms that aim at establishing institutions that can truly commercialize Chinese banks. Last but not least, the efficiency of banking depends on healthy growth of the overall economy.     

An analysis of the impact of unionization on efficiency: evidence from a meta-frontier analysis

This article examines the impact of unions on the efficiency of establishments in the manufacturing industry by comparing the results from two different empirical strategies: stochastic frontier analysis (SFA) and meta-frontier analysis (MFA). While SFA concludes that union establishments show higher technological efficiency, the results are the opposite when estimating production functions with MFA. In SFA, unionized establishments appear to be more efficient because they remain closer to their own production frontier; however, in MFA – where groups with heterogeneous technology can be compared – we find that nonunionized establishments are more efficient because they are closer to the meta-frontier than their unionized counterparts.     

基于非参数随机前沿面模型的高技术产业效率研究

笔者利用非参数-随机前沿面模型对我国的高技术产业效率进行了实证研究。研究结果表明我国的高技术产业发展过多的是依靠数量扩张,投入产出效率不高,各地区之间的高技术产业效率差异很大,而且在某些地区还存在着高技术产业发展水平和效率水平相背离的现象。     

Regulatory reform and labour earnings in Portuguese banking

This study examines changes in union contracts and wage structure during and after the introduction of regulatory reforms (deregulation and privatisation) in the Portuguese banking sector. The main finding is that, despite a relative wage erosion detected in the contract data, banking workers were able to enjoy an increasing wage premium in the period 1985–2000, probably reflecting the increasing profitability of the industry and the rise in labour productivity. The evidence also shows that some specific groups benefited relatively more than others: the least skilled and educated workforce and male workers gained more from the regulatory reforms. However, this unequal sharing of the wage premium did not raise wage inequality across ownership groups in the industry. I thank Mark Stewart, Odd Rune Straume, Ian Walker and two anonymous referees for very helpful comments. I am indebted to the Ministério do Trabalho e da Solidariedade for allowing the availability of data from Quadros de Pessoal. Financial support was provided by the Ministério da Ciência e Tecnologia under the grant BD/SFRH/2000/1291.     

Determinants of bank cost efficiency in transition economies: evidence for Latin America,Central and Eastern Europe and South-East Asia

In this study, we adopt Wang’s (2002) heteroscedastic stochastic frontier model, which allows us to investigate bank cost efficiency and to measure the marginal effects of some variables on both the level and the variability of inefficiency. In recent years, the financial crisis has significantly affected the banking systems of the transition countries. Hence, the efficiency is of major importance for the stability of the banks. Regarding the determinants of efficiency, we find evidence that banks that follow a more cautious strategy, characterized by lower risk appetite and average expectations on profitability, have higher cost efficiency. We also find that traditional deposit-taking and loan-making still remain the most efficient activity of the banks. Additionally, the results showed that a higher Gross Domestic Product growth rate implies an increase in the inefficiency level, indicating an unsustainable bank management behaviour, which in periods of economic growth adopts policies that can generate inefficiency in order to gain market share and to obtain higher bonuses. Country cost efficiency results show significant differences. The banking systems in transition countries in South Eastern Asia appear to have a higher cost efficiency level. Also, the effects of the financial crisis were less significant in this region.     

Testing for profitability and contestability in banking: evidence from Austria

The paper investigates the determinants of banking profitability and banking market conditions in Austria. We conduct a panel econometric analysis which allows for testing the hypotheses which have become the most prominent in the literature on bank profitability: the structure–conduct–performance hypothesis, the efficient‐structure hypothesis and the relative market‐power hypothesis. Further, we test whether Austrian banking markets are, on average, contestable. A newly compiled dataset covering more than 700 Austrian banks ranging over the period from 1995 to 2002 is used to carry out these econometric analyses. The empirical findings support the view that the Austrian banks do exert, on average, some local market power. However, the gains in terms of excess profits are rather minor as a result of low deterrence powers of the incumbent banks.     

Banking structure and financial stability: a comparison of Chinese and German banking systems

In the process of financial globalization and diversification, the issue of financial stability has become heated all over the world. This paper attempts to uncover the delicate relationship between banking structure and financial stability by comparing and analyzing the situation of the Chinese and German banking systems. This paper suggests that (i) the trade-off between competition and concentration in banking industry is a vital factor to maintain financial stability and (ii) concentration is not always a bad thing for financial stability, especially in banking systems with discontent bank performance.     

中国工业行业的能源效率特征及其影响因素——基于非参数前沿的实证分析

文章采用非参数前沿方法,对中国工业行业的能源效率特征及其影响因素进行了实证分析.结果表明,工业行业能源效率普遍偏低,而且能源与资本、劳动之间的替代效应微弱.这主要是由工业化进程中所形成的刚性高耗能技术结构所导致的.从长期看,技术进步和能源价格对提高工业行业的能源效率具有正向作用.这意味着节能减排的重点必须立足于长期,进一步推进能源价格改革,建立节能减排长效机制,弱化长期以来形成的高耗能技术结构.     

Technical efficiency and returns to scale in Austrian commercial banking: 1987–1991

In a pooled time-series cross-section study covering the period 1987–1991, the technical efficiency of Austrian all-purpose banks is analysed. The sample covers banks of all size classes, among them the largest 18 banks as well as some of the very small banks. The empirical results show that local banks and nationwide operating banks are technically most efficient while regional banks are least efficient. Moreover, it can be shown that the technical efficiency of nationwide operating banks improved substantially in the period analysed relative to that of local and regional banks.I wish to thank an anonymous referee for his helpful comments. Financial support from the Vienna Chamber of Commerce is gratefully acknowledged.     

Looking at the determinants of efficiency in banking: evidence from Italian mutual-cooperatives

Italy has experienced a restructuring and consolidation process in the banking industry since the 1990s that is expected to foster efficiency and competition. Despite the reforms, a peculiarity of the industry is the persistence of small mutual-cooperative banks (Banche di Credito Cooperativo, BCCs) active in narrow markets. The scope of this paper is to analyze the determinants of BCCs’ efficiency in the 2006–2011 period. In the first step of the study, a stochastic cost frontier is used to yield bank efficiency. Then the cost efficiency becomes the dependent variable of fixed and random effect models. The reference market of BCCs is the province (NUTS3). We find that BCC cost efficiency is positively affected by market concentration and demand density and inversely related to branching. Importantly, these results are robust to any sample restriction anchored to the distribution of efficiency. While the evidence regarding the credit quality is inconclusive for all BCCs, the sensitivity analysis shows that the risk in local markets is a source of BCC cost inefficiency.     

Technical Efficiency in the Chinese Textile Industry

This paper presents a measurement of the technical efficiency of textile industries with 4-digit codes in China by using the cross-section data from 2002 and 2007 and a fully nonparametric stochastic frontier estimation approach. The technical efficiency of these textile industries is compared across six economic ownership types and across seven regions in China. This uncovers the effects of the proprietary characteristics and the location of a firm on its technical efficiency performance. The nonparametric estimation provides some interesting findings. First, textile production in China performs with a decreasing return to scale. The difference between the output elasticity of labor and that of capital decreases from the year 2002 to 2007. Second, the technical efficiency of the 4-digit textile industry in China is significantly contingent on its ownership and location. Privately-run textile enterprises on average perform with the highest level of technical efficiency among the six ownership types while state-owned enterprises perform with the lowest level of technical efficiency, whether or not the location dummies are accounted for. Third, the technical efficiency evaluated by regions follows the order: “eastern area > southern area > central area > northern area,” which remains unchanged across the two years.     

中国高新技术改造传统产业企业技术创新效率测算及其影响因素——基于超越对数随机前沿模型的实证分析

利用2008—2012年182家上海高新技术改造传统产业企业的面板数据,运用超越对数随机前沿模型测度了其技术创新效率,并分析了企业的创新开放性、技术学习努力程度、技术学习能力、科技活动长期行为倾向、政府支持力度等对企业技术创新效率的影响。结果显示:企业的技术学习能力、科技活动长期行为倾向和政府支持力度对企业技术创新效率的提升有显著的促进作用,而创新开放性、技术学习努力程度在2年后才有正向影响。最后提出相关的政策建议。     

The determinants of banking efficiency in Hong Kong 2004-2014

The cost efficiency of the Hong Kong Banking sector over the period 2004–2014 is estimated by data envelopment window analysis. A second stage regression analysis finds that bank size and GDP growth are positively associated with efficiency, whereas revenue diversification and inflation are associated with lower efficiency. Stock exchange listing status is associated with lower efficiency but no clear relationship between measures of market structure and efficiency is found.     

中国工业部门能源利用效率的测度与节能潜力：基于随机前沿方法的分析

能源利用效率是制约我国经济社会可持续发展的关键因素。本文以工业部门2003年至2010年38个行业的面板数据为样本,运用随机前沿方法对各行业的技术效率进行测定和比较,并对各行业的节能潜力进行了分析。研究发现,资本密集型行业的能源利用效率最高,其次是劳动密集型行业,资源密集型行业的能源利用效率最低。各行业能源效率都有提高的趋势,节能潜力因行业而异。针对不同行业的节能潜力,政府应采取不同的节能激励政策。本研究可以为识别行业节能潜力差异性和提高能源效率的政策制定提供参考,进一步促进能源利用技术效率提高和经济的可持续发展。     

效率测度方法的发展及在我国银行业的应用

本文介绍了国外银行效率测度方法的发展历程及其最新进展,分析、评价、比较了效率测度的数据包络分析法、随机前沿法、自由分布法、厚前沿法及递归厚前沿法等。同时,本文还介绍了上述方法在中国的研究与应用情况,指出了我国学者在研究与应用过程中存在的问题及改进方向。     

我国电子及通信设备制造业研发转化效率的实证分析——基于随机前沿生产函数

运用随机前沿分析法测算了2000—2010年我国电子及通信设备制造业的研发转化效率,并分析了市场结构、企业规模、政府扶持力度和技术改造能力对我国电子及通信设备制造业研发转化效率的影响。研究结果表明:2000—2010年期间,我国电子及通信设备制造业的研发转化效率呈稳步增长趋势,但总体水平仍较低;市场结构、企业规模以及技术改造能力对研发转化效率的影响显著,而政府扶持力度对研发转化效率的作用不明显。最后,提出提升我国电子及通信设备制造业研发转化效率的政策建议。