IMF bank-restructuring efficiency outcomes: Evidence from east Asia

Mohamed Ariff, Luc Can

Research output: Contribution to journalArticleResearchpeer-review

23 Citations (Scopus)

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 languageEnglish
Pages (from-to)167-187
Number of pages21
JournalJournal of Financial Services Research
Volume35
Issue number2
DOIs
Publication statusPublished - Apr 2009

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East Asia
Bank restructuring
Bank efficiency
Closure
Participation
Asian countries
Mergers
Government ownership
Foreign banks
Recapitalization

Cite this

Ariff, Mohamed ; Can, Luc. / IMF bank-restructuring efficiency outcomes : Evidence from east Asia. In: Journal of Financial Services Research. 2009 ; Vol. 35, No. 2. pp. 167-187.
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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 journalArticleResearchpeer-review

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