The subprime crisis and its effects on the efficiency of the Chilean banking sector

Revista de Economía Institucional

View Publication Info
 
 
Field Value
 
Title The subprime crisis and its effects on the efficiency of the Chilean banking sector
La crisis subprime y sus efectos en la eficiencia del sector bancario chileno
A crise do subprime e seus efeitos sobre a eficiência do setor bancário chileno
 
Creator Candia Campano, Claudio
Aguirre González, Medardo
Orellana Valenzuela, Vanessa
Gaete Morales, Michael
 
Subject technical efficiency, banking industry, stochastic frontier production functions
eficiencia técnica, industria bancaria, fronteras estocásticas de producción
eficiência técnica, indústria bancária, fronteiras de produção estocásticas
 
Description The objective of the research is to measure the effects of the subprime crisis on the production of efficiency and on the technical efficiency of the banking industry in Chile. For this, stochastic frontier production function methodology was used for a balanced data panel that collected information from 14 banks operating in Chilean territory for the period 2004-2015. The main results of the investigation indicate that during the crisis period, the production of efficiency and technical efficiency of the banking industry is lower, finding more important differences with respect to the period after the crisis.
Este trabajo mide los efectos de la crisis subprime en la producción de eficiencia y la eficiencia técnica de la banca chilena. Se aplica el método de fronteras estocásticas de producción a un panel de datos balanceados de 14 bancos que operaban en territorio chileno entre 2004 y 2015. Los principales resultados indican que durante la crisis la producción de eficiencia y la eficiencia técnica fueron menores que en los periodos anterior y posterior, con mayores diferencias respecto del periodo posterior.
Este documento mede os efeitos da crise do subprime sobre a eficiência da produção e sobre a eficiência técnica do sistema bancário chileno. O método das fronteiras de produção estocásticas é aplicado a um painel de dados balanceados de 14 bancos que operavam em território chileno entre 2004 e 2015. Os principais resultados indicam que, durante a crise, a produção de eficiência e a eficiência técnica foram menores que nos períodos anterior e posterior, com maiores diferenças em relação ao período posterior.
 
Publisher Universidad Externado de Colombia
 
Date 2019-05-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier https://revistas.uexternado.edu.co/index.php/ecoins/article/view/5974
10.18601/01245996.v21n41.08
 
Source Revista de Economía Institucional; Vol. 21 Núm. 41 (2019): Julio-Diciembre; 187-211
Revista de Economía Institucional; Vol 21 No 41 (2019): Julio-Diciembre; 187-211
Revista de Economía Institucional; v. 21 n. 41 (2019): Julio-Diciembre; 187-211
2346-2450
0124-5996
 
Language spa
 
Relation /*ref*/<p>Aguirre, M., Bravo, G. et al. (2007). Analisis comparativo de eficiencia técnica entre la banca chilena y alemana. <em>Revista de Matemática: Teoría y Aplicaciones</em>,<em> 14</em>(2), 203-219.<br>Aigner, D.J., Lovell, C. A. (1977). Formulation and estimation of stochastic frontier production function models. <em>Journal of Econometrics</em>, 6, 21-37.<br>Akmal, M. y Saleem, M. (2008). Thechnical efficiency of the banking sector in pakistan. <em>SBP Research Bulletin</em>, <em>4</em>(1), 61-80.<br>Andrieș, A. M. y Ursu, S. G. (2016). Financial crisis and bank efficiency: An empirical study of European banks. <em>Economic Research-Ekonomska Istraživanja</em>, <em>29</em>(1), 485-497.<br>Badel, A. (2002). <em>Sistema bancario colombiano: ¿somos eficientes a nivel internacional?</em> DNP. Archivos de Economía 190.<br>Baily, M., Johnson, M. et al. (2008). <em>The origins of the financial crisis</em>. Washington DC: NBER paper 3.<br>Battese, G. E. (1992). Frontier production functions and technical efficiency: A survey of empirical applications in agricultural economics. <em>Agricultural Economics</em>, 7, 185-208.<br>Battese, G. E. y Coelli, T. J. (1988). Prediction of firm-level technical efficiencies with a generalised frontier production function and panel data. <em>Journal of Econometrics</em>, <em>38</em>(3), 387-399.<br>Battese, G. E. y Coelli, T. J. (1992). Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India. <em>Journal of Productivity Analysis</em>, <em>3</em>(1-2), 153-169.<br>Battese, G. E. y Coelli, T. J. (1993). A stochastic frontier production function incorporating a model for technical inefficiency effects. Working Papers in Econometrics and Applied Statistics n.º 69. University of New England, Armidale.<br>Battese, G. E. y Coelli, T. J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. <em>Empirical Economics</em>, 20, 325-332.<br>Battese, G. E. y Corra, G. S. (1977). Estimation of a production frontier model: With application to the pastoral zone of Eastern Australia. <em>Australian Journal of Agricultural Economics</em>, <em>21</em>(3), 169-179.<br>Battese, G. E., Coelli, T. J. et al. (1989). Estimation of frontier production functions and the efficiencies of Indian farms using panel data from ICRISAT’s village level studies. <em>Journal of Quantitative Economics</em>, 5, 327-348.<br>Bauer, P. W. (1990). Recent developments in the econometric estimation of frontiers. <em>Journal of Econometrics</em>, <em>46</em>(1-2), 39-56.<br>Caballero, R. y Krishnamurthy, A. (2001). International and domestic collateral constraints in a model of emerging markets crisis. <em>Journal of Monetary Economics</em>, <em>48</em>(3), 513-548.<br>Carreño, J. L., Loyola, G. et al. (2010). Eficiencia bancaria en Chile: un enfoque de frontera de beneficios. <em>Economía Chilena</em>, <em>13</em>(3), 33-65.<br>Carvallo, O. y Kasman, A. (2005). Cost efficiency in the Latin American and Caribbean banking systems. <em>Journal of International Financial Markets, Institutions and Money</em>, <em>15</em>(1), 55-72.<br>Chang, C. E., Hasan, I. et al. (1993). Efficiency of multinational banks: An empirical investigation. <em>Applied Financial Economics</em>, <em>8</em>(6), 689-696.<br>Claessens, S., Demirgüc-Kunt, A. et al. (2001). How does foreign entry affect the domestic banking market? <em>Journal of Banking and Finance</em>, <em>25</em>(5), 891-911.<br>Coelli, T. J., Rao, D. S. P. et al. (2005). <em>An introduction to efficiency and productivity analysis</em>. 2nd ed. Nueva York: Springer.<br>Coelli, T. (1995). Estimators and hypothesis test for a stochastic frontier function: a Monte Carlo analysis. <em>Journal of Productivity Analysis</em>, <em>6</em>(4), 247-268.<br>Corbo, V., Desormeaux, J. et al. (2011). La gran crisis financiera de 2007-2009. <em>Estudios Públicos</em>, 123, 1-61.<br>Cruz-García, P. y Maudos, J. (2016). La situación del sector bancario español en el contexto europeo: retos pendientes. <em>Cuadernos Económicos de ICE</em>, 92, 81-108.<br>DeYoung, R. y Nolle, D. (1996). Foreign-owned banks in the US: Earning market share or buying it? <em>Journal of Money, Credit, and Banking</em>, <em>28</em>(4), 622-636.<br>Diamond, D. y Dybvig, P. (1983). Bank runs, deposit insurance, and liquidity.<em> Journal of Political Economy</em>, <em>91</em>(3), 401-419.<br>Din, M., Ghani, E. et al. (2007). Technical efficiency of Pakistan’s manufacturing sector: A stochastic frontier and data envelopment analysis. <em>The Pakistan Development Review</em>, <em>46</em>(1), 1-18.<br>Fama, E. F. (1980). Banking in a theory of financial de Eugene Fama. <em>Journal of Monetary Economics</em>, <em>6</em>(1) 39-57.<br>Färe, R., Grosskopf, S. et al. (1985). <em>The measurement of efficiency of production</em>. Nueva York: Springer Science.<br>Førsund, F. R., Lovell, C. A et al. (1980). A survey of frontier production functions and of their relationship to efficiency measurement. <em>Journal of Econometrics</em>, <em>13</em>(1), 5-25.<br>Goldfajn, I. y Valdés, R. (1997). <em>Capital flows and the twin crisis: The role of liquidity</em>. Washington DC: IMF working paper 97/98.<br>Greene, W. H. (1993a). The econometric approach to efficiency analysis. En H. O. Fried, C. A. et al. (eds.), <em>The measurement of productive efficiency</em> (pp. 68-119). Nueva York: Oxford University Press.<br>Greene, W. H. (1993b). <em>Frontier production functions</em>. Stern School of Business: NYU working paper EC 93-20.<br>Haron, S. y Mohd, I. (2008). Technical efficiency of the Malaysian commercial banks: a stochastic frontier approach. <em>Banks and Bank Systems</em>, <em>3</em>(4), 65-72.<br>Huang, C. J. y Liu J-T. (1994). Estimation of a non-neutral stochastic frontier production function. <em>Journal of Productivity Analysis</em>, <em>5</em>(2), 171-180.<br>Hubbard, G. y Navarro, P. (2011). <em>Seeds of destruction</em>. Saddle River, NJ: Pearson Education.<br>Isik, I. y Hassan, M. (2002). Technical, scale and allocative efficiencies of Turkish banking industry. <em>Journal of Banking y Finance</em>, 26, 719-766.<br>Jemric, I. y Vujcic, B. (2002). Efficiency of banks in Croatia: A DEA approach. <em>Comparative Economic Studies</em>, <em>44</em>(2-3), 169-193.<br>Kalirajan, K. (1981). An econometric analysis of yield variability in paddy production. <em>Canadian Journal of Agricultural Economics</em>, <em>29</em>(3), 283-294.<br>Kasman, A. (2005). Efficiency and scale economies in transition economies: Evidence from Poland and the Czech Republic. <em>Emerging Markets Finance and Trade</em>, <em>41</em>(2), 60-81.<br>Kirkwood, J. y Nahm, D. (2006). Australian banking efficiency and its relation to stock returns. <em>Economic Record</em>,<em> 82</em>(258), 253-267.<br>Kneller, R. y Stevens, P. (2003). The specification of the aggregate production function in the presence of inefficiency. <em>Economics Letters</em>, <em>81</em>(2), 223-226.<br>Kolb, R. (2011). <em>The financial crisis of our time</em>. Nueva York: Oxford University Press.<br>Kristjanpoller, W. y Saavedra, O. (2014). La eficiencia técnica de los bancos durante la crisis. Caso aplicado a la rentabilidad de la banca comercial en México y Chile. <em>Contaduría y Administración</em>, <em>59</em>(1), 95-122.<br>Kumbhakar, S. y Wang, H. (2005). Estimation of growth convergence using a stochastic production frontier approach. <em>Economics Letters</em>, <em>88</em>(3), 300-305.<br>Kumbhakar, S. C., Ghosh, S. et al. (1991). A generalized production frontier approach for estimating determinants of inefficiency in US dairy farms. <em>Journal of Business and Economic Statistics</em>, <em>9</em>(39), 279-286.<br>Mahajan, A., Rangan, N. et al. (1996). Cost structures in multinational and domestic banking.<em> Journal of Banking and Finance</em>, 20, 238-306.<br>Meeusen, W. y Van den Broeck, J. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. <em>International Economic Review</em>, <em>18</em>(2), 435-444.<br>Miller, S. y Noulas, A. (1996). The technical efficiency of large bank production.<em> Journal of Banking y Finance</em>, <em>20</em>(3), 495-509.<br>Mondragón, L., Piñeros, J. H. et al. (2013). <em>Eficiencia de los establecimientos bancarios (EB): una aproximación mediante modelos DEA</em>. Banco de la República 798.<br>Moradi-Motlagh, A. y Babacan, A. (2015). The impact of the global financial crisis on the efficiency of Australian banks. <em>Economic Modelling</em>, <em>46</em>(C), 397-406.<br>Nauriyal, B. (1995). Measures of cost economies in Chilean Banking: 1984-1991. <em>Revista de Análisis Económico</em>, <em>10</em>(1), 71-79.<br>Olson, J., Schmidt, P. et al. (1980). A Monte Carlo study of estimators of the stochastic frontier production function.<em> Journal of Econometrics</em>, <em>13</em>(1), 67-82.<br>Parisi, F. y Parisi, A. (2005). <em>Ranking de banca: 1995-2004</em>. Departamento de Administración, Universidad de Chile.<br>Peña, J., Basch, M. et al. (2003). Eficiencia técnica y escala de operación en pesca pelágica: un análisis de fronteras estocásticas. <em>Cuadernos de Economía</em>, <em>40</em>(119), 47-87.<br>Pitt, M. M. y Lee, L. F. (1981). Measurement and sources of technical inefficiency in the Indonesian weaving industry. <em>Journal of Development Economics</em>, <em>9</em>(1), 43-64.<br>Polachek, S. W. y Yoon, B. J. (1995). <em>Consistency of maximum likelihood estimators in stochastic frontier models</em>. Department of Economics, State University of New York.<br>Quiggin, J. (2011). What have we learned from the global financial crisis? <em>The Australian Economic Review</em>, <em>44</em>(4), 355-365.<br>Reifschneider, D. y Stevenson, R. (1991). Systematic departures from the frontier: A framework for the analysis of firm inefficiency. <em>International Economic Review</em>, <em>32</em>(3), 715-723.<br>Schmidt, P. (1986). Frontier production functions. <em>Econometric Reviews</em>, <em>4</em>(2), 289-328.<br>Singh, B., Elkanj, N. et al. (2017). Impact of financial crisis on banking sector efficiency in the Arab world. <em>International Journal of Development and Conflict</em>, <em>7</em>(1), 49-64.<br>Skármeta, C. (1982). Economías de escala en la banca comercial Chilena. <em>Cuadernos de Economía</em>, <em>19</em>(56), 69-86.<br>Staub, R., Da Silva, G. et al. (2010). Evolution of bank efficiency in Brazil: A DEA approach. <em>European Journal of Operational Research</em>, <em>202</em>(1), 204-213.<br>Tybout, J. (2000). Manufacturing firms in developing countries: How well do they do, and Why?<em> Journal of Economic Literature</em>, <em>38</em>(1), 11-44.<br>Vergara, M. (2006). Nota técnica para estimar fronteras estocásticas: una aplicación a la banca chilena. <em>Estudios de Administración</em>,<em> 13</em>(2), 47-66.<br>Weill, L. (2002). Banking efficiency in transition economies: The role of foreign ownership. <em>Economics of Transition</em>, <em>11</em>(3), 569-592.<br>Wolters, M. E., Barbosa Do Couto, E. et al. (2014). The effects of the global financial crisis on Brazilian banking efficiency.<em> Innovar</em>, <em>24</em>(53), 23-40.<br>Zeitun, R. y Benjelloun, H. (2012). The efficiency of banks and financial crisis in a developing economy: The case of Jordan. <em>International Review of Accounting, Banking and Finance</em>, <em>4</em>(2), 28-60.<br>Zúñiga, S. y Dagnino, E. (2003). Medición de la eficiencia bancaria en Chile a través de fronteras estocásticas (1990-1999). <em>ABANTE</em>,<em> 6</em>(2), 83-116.</p>
https://revistas.uexternado.edu.co/index.php/ecoins/article/view/5974/7697
 
Rights Derechos de autor 2019 Claudio Candia Campano, Medardo Aguirre González, Vanessa Orellana Valenzuela, Michael Gaete Morales
http://creativecommons.org/licenses/by-nc-sa/4.0
 

Contact Us

The PKP Index is an initiative of the Public Knowledge Project.

For PKP Publishing Services please use the PKP|PS contact form.

For support with PKP software we encourage users to consult our wiki for documentation and search our support forums.

For any other correspondence feel free to contact us using the PKP contact form.

Find Us

Twitter

Copyright © 2015-2018 Simon Fraser University Library