Factors affecting bank efficiency of Asian tiger club economies: A traditional and data envelopment analysis method approach

This paper would like to determine the bank specific factors that have an effect on the bank efficiencies of the Asian Tiger Cub Economies. The degree or level of bank efficiency was also determined by the study. Bank efficiency can be determined when banks are able to gain profit while minimizing their costs and when they are able to serve their function given the possible constraints. The results of the paper show that there are different drivers of their efficiencies per Asian Tiger Club Economy. Bank specific factors: Return on Assets (ROA), Return on Equity (ROE), Cost to Income ratio (CIR), Net Interest Margin (NIM), Asset to Equity ratio (AER), and Weighted Reserves (WR) turn out to be significant in determining bank efficiency. With that said, it is now determined which factors should be focused per country in attaining the highest efficiency