Abstract
We report new findings on bank efficiency in East Asian countries for the pre- and post-IMF restructuring periods. We find that bank efficiency has improved, but only to the pre-IMF intervention level, and that restructured banks are not more efficient than their unrestructured counterparts. Different restructuring measures have different effects. Bank closures are economically justified, but mergers show short-term efficiency losses. Recapitalization and reprivatization of badly performing banks lead to efficiency improvement, but also increase government ownership. Ease of entry that has allowed for more foreign bank participation results in slightly improved performance of badly performing banks.
| Original language | English |
|---|---|
| Pages (from-to) | 167-187 |
| Number of pages | 21 |
| Journal | Journal of Financial Services Research |
| Volume | 35 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - Apr 2009 |
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IMF bank-restructuring efficiency outcomes : Evidence from east Asia. / Ariff, Mohamed; Can, Luc.
In: Journal of Financial Services Research, Vol. 35, No. 2, 04.2009, p. 167-187.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - IMF bank-restructuring efficiency outcomes
T2 - Evidence from east Asia
AU - Ariff, Mohamed
AU - Can, Luc
PY - 2009/4
Y1 - 2009/4
N2 - We report new findings on bank efficiency in East Asian countries for the pre- and post-IMF restructuring periods. We find that bank efficiency has improved, but only to the pre-IMF intervention level, and that restructured banks are not more efficient than their unrestructured counterparts. Different restructuring measures have different effects. Bank closures are economically justified, but mergers show short-term efficiency losses. Recapitalization and reprivatization of badly performing banks lead to efficiency improvement, but also increase government ownership. Ease of entry that has allowed for more foreign bank participation results in slightly improved performance of badly performing banks.
AB - We report new findings on bank efficiency in East Asian countries for the pre- and post-IMF restructuring periods. We find that bank efficiency has improved, but only to the pre-IMF intervention level, and that restructured banks are not more efficient than their unrestructured counterparts. Different restructuring measures have different effects. Bank closures are economically justified, but mergers show short-term efficiency losses. Recapitalization and reprivatization of badly performing banks lead to efficiency improvement, but also increase government ownership. Ease of entry that has allowed for more foreign bank participation results in slightly improved performance of badly performing banks.
UR - http://www.scopus.com/inward/record.url?scp=59549099132&partnerID=8YFLogxK
U2 - 10.1007/s10693-008-0047-2
DO - 10.1007/s10693-008-0047-2
M3 - Article
VL - 35
SP - 167
EP - 187
JO - Journal of Financial Services Research
JF - Journal of Financial Services Research
SN - 0920-8550
IS - 2
ER -