Effectiveness of the Global Banking System in 2010 – A Data Envelopment Analysis Approach

Chinese Business Review, 10(11), 961-973

13 Pages Posted: 10 Apr 2011 Last revised: 27 Aug 2012

See all articles by Thanh Ngo

Thanh Ngo

Massey University - School of Aviation

Date Written: January 31, 2011

Abstract

The current crisis has revealed the weaknesses of the global financial in general and its banking system in particular, put forward a requirement for assessing the effectiveness and stability of the banking sectors across countries. Based on available data from 64 countries over the World, the author tried to evaluate the effectiveness of the banking sectors in those countries through the view point of the Data Envelopment Analysis approach to define how the global banking systems is under the effect of the current crisis. Findings from the research showed that banking systems in advanced economies are still more effective than in developing countries. More over, it explained the effect of the current financial crisis, the role of public finance (and the government), and the development of the (privately) commercial banks to the effectiveness of the banking sectors. The research also explained some determinants that can affect the effectiveness of the banking system, including inflation, bank concentration, and level of economic development.

Keywords: data envelopment analysis, effectiveness, efficiency, banking, cross countries

Suggested Citation

Ngo, Thanh, Effectiveness of the Global Banking System in 2010 – A Data Envelopment Analysis Approach (January 31, 2011). Chinese Business Review, 10(11), 961-973, Available at SSRN: https://ssrn.com/abstract=1804675 or http://dx.doi.org/10.2139/ssrn.1804675

Thanh Ngo (Contact Author)

Massey University - School of Aviation ( email )

United States

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