Profit efficiency of banks in Colombia with undesirable output: a directional distance function approach

Abstract: This article analyzes the sources of bank efficiency in Colombia over the period 2000–2011. To perform this research, the authors propose a score of bank efficiency using the directional distance function, which was estimated using data envelopment analysis. Additionally, they use an ordered probit panel regression to explore the effects of some market-related and bank-specific factors on efficiency. The results show that the noninclusion of non-performing loans (NPLs) leads to higher bank inefficiency indicators, which are significantly different from those obtained when NPLs are included. Further, they find that economic growth, capital risk, foreign and national banks, and account liquidity risk explain, in part, the efficiency of Colombian banks.

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch

Bibliographic citation
Profit efficiency of banks in Colombia with undesirable output: a directional distance function approach ; volume:12 ; number:1 ; year:2018 ; extent:19
Economics / Journal articles. Journal articles ; 12, Heft 1 (2018) (gesamt 19)

Creator
Almanza, Camilo
Rodríguez, Jhon James Mora

DOI
10.5018/economics-ejournal.ja.2018-30
URN
urn:nbn:de:101:1-2412131008412.777327711552
Rights
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
15.08.2025, 7:33 AM CEST

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Associated

  • Almanza, Camilo
  • Rodríguez, Jhon James Mora

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