Weeratilake Dias and Glenn A. Helmers
Nonparametric data envelopment analysis is used to determine productivity and efficiency of agricultural and nonagricultural banks categorized into six different asset size…
Abstract
Nonparametric data envelopment analysis is used to determine productivity and efficiency of agricultural and nonagricultural banks categorized into six different asset size groups. An output‐oriented Malmquist index is estimated and decomposed into its components to provide a comparison of performance over the 1981 1991 study period. Results show the primary source of productivity improvements for larger banks of both types has been technical changes or innovations. Small banks of both types have derived competitive strength from increased efficiency gains or catching up with frontier banks. Competitive pressure brought in by restructuring of the agricultural credit market has caused increased volatility in productivity growth, showing negative total factor productivity for the study period.