Purpose – The purpose of this paper is to investigate use of efficiency analysis as a technique for investigating bank safely and soundness. Design/methodology/approach – Three different data envelopment analysis (DEA) models were applied to set of data for the major New Zealand banks over a...

Purpose – The purpose of this paper is to present competing theories that argue: that boards of directors of locally incorporated subsidiaries of trans‐national entities contribute positively to local operations; and that locally constituted boards are an unnecessary expense and can confound...

This paper examines the selection of data source and econometric technique for studies of banking efficiency using translog cost functions. We examine the use of Seemingly Unrelated Regression estimation for a cost function, as against estimation using Ordinary Least Squares. Choice of cost data...

Purpose – The purpose of this paper is to investigate use of efficiency analysis as a technique for investigating bank safely and soundness. Design/methodology/approach – Three different data envelopment analysis (DEA) models were applied to set of data for the major New Zealand banks over a...

Purpose – This paper aims to argue that in the short history of New Zealand banking, political experimentation, based at first upon socialist ideology of the 1940s led to the nationalisation of The Bank of New Zealand (BNZ), followed by a period of neo‐liberalism in the 1980s and early 1990s...

Purpose This paper aims to examine alternative methods for recording and treating costs in studies of bank efficiency. Design/methodology/approach This study used stochastic frontier analysis (SFA) models with core costs and total costs to estimate the cost efficiency of banks in two different...

Purpose This paper aims to examine alternative methods for treating nonperforming loans (NPLs) in bank cost-efficiency studies using stochastic frontier analysis (SFA). Design/methodology/approach The authors consider three methods of treating NPLs in SFA: as an additional control variable, as...

Purpose Paying too much for funding or failing to obtain adequate returns for lending and interest-bearing assets because of inappropriate mix is just as much a source of inefficiency in banking as overutilisation of input resources. The purpose of this research is to examine bank performance in...