Abstract
This paper explores the efficiency of banks in 9 ASEAN countries including Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam in the period of 2013 2017 by using a non-participation approach. Input-oriented DEA method, with the inputs being Equity; Deposits; Loans and Operating expenses with one output are the Total operating income. The results show that the average overall efficiency of ASEAN banks in the study period is 59.2%, with this result, if the output is constant, the banks can save up to 40.8% of the first. into the business process. Among ASEAN countries in the research period, banks in Indonesia, Cambodia and Thailand are among the most effective with the efficiency of 0.746 0.745 and 0.605. Banks in Vietnam, Malaysia and Brunei had the lowest average efficiency during the study period with average efficiency of 0.514, 0.538 and 0.544.
Highlights
Association of Southeast Asian Nations (ASEAN) is an intergovernmental organization established on 8/8/1967 in Bangkok, Thailand with the main objective of strengthening cooperation
The main idea of a classic data envelopment analysis (DEA) is to determine the production boundary, on which the decision points for the DMUs are considered to be effective, the non-frontier DMUs will be compared with the equivalent DMUs on the boundary to estimate. efficiency points. [15] made the assumption that the production efficiency varies with the scale (VRS) of the BCC model
The estimation results from the model show that the average overall efficiency of ASEAN commercial banks in the study period is 59.2%, this result shows that, with constant output, banks can save as much as possible. 40.8 %% input during business operation
Summary
Association of Southeast Asian Nations (ASEAN) is an intergovernmental organization established on 8/8/1967 in Bangkok, Thailand with the main objective of strengthening cooperation. Security, economic and cultural-social relations between member countries, facilitating deeper integration with the region and the world. ASEAN includes 10 countries in Southeast Asia: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia. Integration in the financial and banking sector has always been identified as one of ASEAN's important strategies to pursue the goal of establishing a highly regionally connected financial market. After the Asian financial crisis in 1997 and the global financial crisis in 2008, most of the banking systems in ASEAN countries have made the recovery process through restructuring and financial reform.
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