Ownership Structure and Bank Efficiency in Six Asian Countries

  • Thierno Amadou Barry Université de Limoges
  • Santos José III O Dacanay University of the Philippines Baguio
  • Laetitia Lepetit Université de Limoges
  • Amine Tarazi Université de Limoges, LAPE
Keywords: bank efficiency, ownership structure, DEA, Southeast Asia, East Asia


This paper focuses on efficiency measures of banks from six countries in Southeast and East Asia. We use a two-stage approach to study the post-crisis period 1999-2004. We first estimate technical efficiencies using Data Envelopment Analysis and test for cross-country differences. Efficiency scores are relatively high for South Korea and relatively low for the Philippines. We then investigate the link between ownership structure and efficiency controlling for various factors such as size, risk and the economic environment. We find that efficiency scores are higher for banks which are held by minority private shareholders and banks that are foreign-owned.

Author Biographies

Thierno Amadou Barry, Université de Limoges

Laboratoire d'Analyse et Prospective Économiques (LAPE)

Santos José III O Dacanay, University of the Philippines Baguio

Associate Professor, Institute of Management, College of Social Sciences

Laetitia Lepetit, Université de Limoges

Laboratoire d'Analyse et Prospective Économiques (LAPE)

Amine Tarazi, Université de Limoges, LAPE

Faculty of Law and Economic Science and Director, Laboratoire d’Analyse et Prospective Économiques (LAPE)