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Analysing banks' intermediation and operational performance using the Hicks–Moorsteen TFP index: the case of Iran

Journal Article


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Abstract


  • In

    order

    to

    analyse

    the

    impact

    of

    policy

    reforms

    on

    the

    performance

    of

    the

    banking

    sector

    in

    Iran

    we

    present

    a

    decomposition

    of

    the

    Hicks–Moorsteen

    Total

    Factor

    Productivity

    (TFP).

    This

    entails

    a

    comparison

    of

    both

    the

    intermediate

    and

    operating

    performances

    of

    different

    types

    of

    banks

    in

    the

    pre-

    and

    post-reform

    eras.

    Our

    results

    show

    that

    under

    the

    intermediation

    approach,

    state-owned

    banks

    (public

    banks)

    were

    considerably

    more

    efficient

    than

    private

    banks

    in

    the

    post-regulation

    period.

    In

    contrast,

    under

    the

    operating

    approach,

    private

    banks

    were

    fully

    technically

    efficient

    and

    mix

    efficient

    in

    both

    pre

    and

    post-reform

    eras.

    This

    paper

    highlights

    the

    importance

    of

    analysing

    performance

    from

    multiple

    perspectives.

    The

    findings

    reflect

    public

    banks’

    mission

    to

    maximise

    loans

    to

    target

    groups

    while

    private

    banks

    are

    motivated

    more

    by

    financial

    profit.

Publication Date


  • 2014

Citation


  • Arjomandi, A., Valadkhani, A. & O'Brien, M. (2014). Analysing banks' intermediation and operational performance using the Hicks–Moorsteen TFP index: the case of Iran. Research in International Business and Finance, 40 (2014), 111-125.

Scopus Eid


  • 2-s2.0-84880685971

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1199&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/197

Number Of Pages


  • 14

Start Page


  • 111

End Page


  • 125

Volume


  • 40

Issue


  • 2014

Abstract


  • In

    order

    to

    analyse

    the

    impact

    of

    policy

    reforms

    on

    the

    performance

    of

    the

    banking

    sector

    in

    Iran

    we

    present

    a

    decomposition

    of

    the

    Hicks–Moorsteen

    Total

    Factor

    Productivity

    (TFP).

    This

    entails

    a

    comparison

    of

    both

    the

    intermediate

    and

    operating

    performances

    of

    different

    types

    of

    banks

    in

    the

    pre-

    and

    post-reform

    eras.

    Our

    results

    show

    that

    under

    the

    intermediation

    approach,

    state-owned

    banks

    (public

    banks)

    were

    considerably

    more

    efficient

    than

    private

    banks

    in

    the

    post-regulation

    period.

    In

    contrast,

    under

    the

    operating

    approach,

    private

    banks

    were

    fully

    technically

    efficient

    and

    mix

    efficient

    in

    both

    pre

    and

    post-reform

    eras.

    This

    paper

    highlights

    the

    importance

    of

    analysing

    performance

    from

    multiple

    perspectives.

    The

    findings

    reflect

    public

    banks’

    mission

    to

    maximise

    loans

    to

    target

    groups

    while

    private

    banks

    are

    motivated

    more

    by

    financial

    profit.

Publication Date


  • 2014

Citation


  • Arjomandi, A., Valadkhani, A. & O'Brien, M. (2014). Analysing banks' intermediation and operational performance using the Hicks–Moorsteen TFP index: the case of Iran. Research in International Business and Finance, 40 (2014), 111-125.

Scopus Eid


  • 2-s2.0-84880685971

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1199&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/197

Number Of Pages


  • 14

Start Page


  • 111

End Page


  • 125

Volume


  • 40

Issue


  • 2014