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Does
Banking Consolidation Lead to Efficiency Gains?
Evidence
from Large Commercial Banks in Europe and US
-- Bernardo Maggi and Stefania P S Rossi
This
article aims at investigating the efficiency of European and
US commercial banks. Scale and scope economies indicators,
as well as a measurement of X-efficiency are derived from
three cost functions: Fourier flexible form, translog and
Box-Cox. This allows checking the stability and the robustness
of the evidence across the different specifications. Our results
over the period 1995-98 show that overall the largest banks
do not seem to have higher efficiency scores. Therefore, further
enlargement of the production size does not necessarily lead
to production gains.
©
2006 IUP . All Rights Reserved.
An
Analysis of Technical Progress and Efficiency
in Malaysian Commercial Banks Before Mergers
--
Shazali
Abu Mansor,
Alias Radam and Muzafar Shah Habibullah
This
study attempts to measure the productivity of the banking
industry by employing the nonparametric malmquist index approach.
The finding has shown that there is a decline in productivity
growth in the banking industry. Like the manufacturing sector,
the future growth of this industry would depend on its ability
to compete efficiently. Being able to provide service in an
efficient way would be an important source of comparative
advantage in the era of globalization. The results also suggest
that the technical efficiency rather than technical progress
contributes to the overall productivity growth of the industry.
©
2006 IUP . All Rights Reserved.
Determinants
of Liquidity and Interest Rates: Some Results for India
during 1990-2005
-- Ajay
Pathak and Subhasis Ray
This
article aims at finding out the possible determinants of liquidity
and subsequently interest rate. Global as well as Indian scenario
is fast changing in the finance sector. Oil prices are rising.
Fed rate is increasing moderately in the US. FII and FDI funds
are flowing to India in abundance. This study is centered
on understanding the `friction' or the `push', these items
may have, on the overall liquidity. It also tries to find
an answer to whether they have any effect on interest rate
or not.
©
2006 IUP . All Rights Reserved.
Joint
Liability Lending in Microcredit Markets with Adverse Selection:
A Survey
-- Alessandro Fedele
This
article reviews recent literature on joint liability lending
in micro-credit markets characterized by adverse selection.
This mode of lending consists of granting individual loans
to wealthless borrowers provided that they form groups. If
a group does not fully repay its obligations, then the microlender
cuts off all members from future credit until the debt is
repaid. Joint liability lending is able to extract information
through a peer selection mechanism, with the effect of raising
both repayment rates and welfare with respect to individual
lending.
©
2006 IUP . All Rights Reserved.
A
Study of CD and CP Market in India:
Cointegration
Analysis of their Volumes
-- Varadraj
Bapat
Markets
for CD that were introduced in 1989 and CP that were introduced
in 1990 exhibit contrasting behavior. Activity in the CP market
booms amidst ample liquidity condition whereas that in CD
market shots up in tight market conditions. In order to examine
the relationship between the sizes of CD and CP markets, the
Augmented Dickey Fuller (ADF) test was conducted to verify
stationarity of the series of the outstanding amounts. The
Johanson-Juselius's Cointegration Test and VAR model of order
2 are used to identify the nature and degree of long-run relationship
between them during the period of ten years from April 1993
to March 2004. The test results demonstrate that outstanding
amounts of CD and CP are not cointegrated.
©
2006 IUP . All Rights Reserved.
A
Service Quality Model for Customers in Public Sector Banks
-- Nalini Prava Tripathy
The
banking sector in India has made remarkable progress since
the economic reforms in 1991. New private sector banks have
brought the necessary competition into the industry and spearheaded
the changes towards higher utilization of technology, improved
customer service and innovative products. Customers are now
becoming increasingly conscious of their rights and are demanding
more than ever before. The recent trends show that most banks
are shifting from a "product-centric model" to a
"customer-centric model" as customer satisfaction
has become one of the major determinants of business growth.
In this context, prioritization of preferences and close monitoring
of customer satisfaction have become essential for banks.
Keeping these in mind, an attempt has been made in this study
to analyze the factors that are essential in influencing the
investment decision of the customers of the public sector
banks. For this purpose, Factor Analysis, which is the most
appropriate multivariate technique, has been used to identify
the groups of determinants. Factor analysis identifies common
dimensions of factors from the observed variables that link
together the seemingly unrelated variables and provides insight
into the underlying structure of the data. Secondly, this
study also suggests some measures to formulate marketing strategies
to lure customers towards banks.
©
2006 IUP . All Rights Reserved.
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