Post-crisis cost efficiency of Jamaican banks

Research output: Journal PublicationArticlepeer-review

4 Citations (Scopus)

Abstract

Deregulation, re-regulation and continuing globalization embody an imperative that banks increase efficiency in order to survive. We employ the Simar-Wilson (2007) two-step double bootstrap Data Envelopment Analysis (DEA) method to measure whether cost efficiency among Jamaican banks has improved between 1998 and 2009 following a number of post-crisis responses aimed at strengthening and improving the sector. Efficiency is extracted from a meta-frontier construction for the full sample period. In addition, we conduct tests for unconditional β-convergence and σ-convergence; overall, the results suggest that there has been a tendency towards improvement in bank efficiency levels for the industry as a whole, but there is also evidence that foreign banks show a higher trend improvement in efficiency.

Original languageEnglish
Pages (from-to)1599-1607
Number of pages9
JournalApplied Financial Economics
Volume23
Issue number20
DOIs
Publication statusPublished - Oct 2013
Externally publishedYes

Keywords

  • DEA
  • Jamaica
  • bank efficiency
  • bootstrap
  • convergence

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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