Work

Cooperative bank efficiency in Japan: a parametric distance function analysis

Year: 2012

Type: article

Abstract: This study examines the relative performance of Japanese cooperative banks between 1998 and 2009, explicitly modeling non-performing loans as an undesirable output. Three key findings emerge. First, the sector is characterized by increasing returns to scale which supports the ongoing amalgamation process within the sector. Second, although restricted in product offerings, markets and their membership base, Japanese cooperatives secured both technical progress (a positive shift in the frontier) and a decrease in technical inefficiency (distance from the frontier). Third, the analysis highlighted that regulatory pressure to reduce non-performing loans will have an adverse impact on both output and performance.

Source: European Journal of Finance

DOI: 10.1080/1351847x.2012.698993

Authors: J. Colin Glass, Donal G. McKillop, Barry Quinn, John Wilson

Institutions: University of Ulster, Queen's University Belfast, Queen's University, University of St Andrews

Language: English

Topic: Efficiency Analysis Using DEA

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W1997479550

FWCI: 2.546

Cites: 62

Cited by: 47

Related to: 10