Productivity measurement of commercial banks in Malaysia with non-performing loans
by Noor Asiah Ramli; S. Sarifah Radiah Shariff; Nurhayati Hamid
Global Business and Economics Review (GBER), Vol. 21, No. 5, 2019

Abstract: In the banking sector, productivity has been considered essential to the development process. This study is determining the productivity of 20 commercial banks in Malaysia consisting of eight domestic banks and 12 foreign banks between the year 2005 and 2014. The Malmquist Luenberger productivity index (MLPI) approach is employed when incorporating undesirable output, i.e., non-performing loan. The productivity measured using MLPI shows that the foreign banks perform at a higher productivity change progression compared to domestic banks. The total geometric mean for productivity change in 2008/2009 is found to be the highest percentage of deterioration which is 17.4%, while the maximum progress of productivity is reported in 2010/2011 which is 25.2%. Overall, the finding exhibits that technological changes, i.e., the innovation effect is the main contributor to the productivity changes during the study period.

Online publication date: Thu, 29-Aug-2019

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the Global Business and Economics Review (GBER):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com