JOURNAL OF ACCOUNTING AND FINANCE
Determinants of Commercial Bank Managerial Efficiency? Evidence from Bangladesh
Author(s): Abdus Samad
Citation: Abdus Samad, (2017) "Determinants of Commercial Bank Managerial Efficiency? Evidence from Bangladesh", Journal of Accounting and Finance, Vol. 17, Iss. 7, pp. 62-77
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper investigated the efficiency and the factors that significantly affected the efficiency of the banking industry of banking industry Bangladesh during 2008-2015 employing the two stage DEA method. The results of the technical efficiency (TE) score revealed that the mean TE of the banking industry of Bangladesh ranged between 96.7 percent and 98.6 percent during 2008-2012 which suggested that the technical inefficiency of the banking sector of Bangladesh ranged between 3.3 percent and 1.4 percent. The results of the pure technical efficiency (PTE) score showed that the average pure technical efficiency (PTE) of the banking industry fluctuated between 98.1 percent and 99.3 percent during 2008- 2012. The PTE efficiency dominated the TE during 2008-2012. The Probit results of CAMEL1 and other bank internal factors showed that both the CAMEL model and the CAMEL Plus model provides an important explanation for both TE and PTE. This paper found, among the factors, that capital adequacy (EQTA), asset quality (LLOSSTA), and bank profitability (ROA) were significant factors for TE and PTE. Among bank internal factors, bank size (logTA) and bank branches (Branch) were significant determinants for bank efficiency.