Cost Efficiency Based Ranking of Bangladeshi Banks 2019

2 Pages Posted: 8 Aug 2019

See all articles by Hashibul Hassan

Hashibul Hassan

Jagannath University - Department of Finance; Monash University - Department of Economics

Sheikh Masrick Hasan

Independent

Mahmudul Hassan

Jagannath University - Department of Finance, Students

Israt Jahan Piya

Independent

Lamia Akter

Independent

Date Written: July 31, 2019

Abstract

We conduct this ranking based on the publicly available data over the period of 2014-18. Out of 59 scheduled banks, we consider only 34 banks due to data unavailability of some banks. We also exclude new banks as they are in the high start-up cost phase. The key idea of this ranking is to find the bank with highest output per cost unit and list rest of the banks in contrast to the best bank. We have used five different stochastic frontier models to address the institutional and environmental heterogeneity. These models are ordered from simple to complex i.e. model 1 is the simplest and the model 5 is the most complex. The following table exhibits the average efficiency score estimated from these five models. Technical details, explanatory notes, data and the ranking of all five models are available in this link- DOI:/10.13140/RG.2.2.29985.35681/1

Suggested Citation

Hassan, Md. Hashibul and Hasan, Sheikh Masrick and Hassan, Mahmudul and Piya, Israt Jahan and Akter, Lamia, Cost Efficiency Based Ranking of Bangladeshi Banks 2019 (July 31, 2019). Available at SSRN: https://ssrn.com/abstract=3432104

Md. Hashibul Hassan (Contact Author)

Jagannath University - Department of Finance ( email )

Dhaka
Bangladesh

HOME PAGE: http://www.jnu.ac.bd

Monash University - Department of Economics ( email )

Australia

Sheikh Masrick Hasan

Independent

Mahmudul Hassan

Jagannath University - Department of Finance, Students ( email )

Dhaka
Bangladesh

Israt Jahan Piya

Independent

Lamia Akter

Independent

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