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The purpose of this paper is to evaluate Chinese commercial banks efficiency based on different non-performing loans in the process. Moreover, we identified the difference among different types of banks (state-owned commercial banks, joint-stock commercial banks and city commercial banks) and different operation stages (deposit producing sub-stage, profit earning sub-stage and overall stage).

Assurance region (AR) restrictions are combined with a two-stage data envelopment analysis (DEA) model. The efficiency scores of 26 Chinese commercial banks (listed banks) are analyzed by a two-stage AR-DEA model in the study period of 2013–2017.

The results show that state-owned commercial banks had better performance than joint-stock commercial banks and city commercial banks over the five-year study period. The development of Internet finance has positive impact on deposit producing sub-stage and insignificant non-homogeneity existed among the different groups in the circumstances of considering different non-performing loans.

The research findings provide practical insights that help bank managers find the defects in operation process, which need to be improved.

Previous studies viewed non-performing loans as an integrated whole variable. The paper divides non-performing loans into three categories based on the risk and investigates the effect of different types of loans on bank efficiency scores.

The banking industry plays a key role in China's financial industry. In the past decade, the speed of the development of China's commercial banks has gradually declined. Commercial banks with different ownership structures also have certain differences in terms of operating efficiency, and their monetary policies are often different. Therefore, the authors study the impact of ownership structure on the efficiency of commercial banks under different monetary policies. This study also provides relevant reference opinions with regard to the healthy, sustainable and stable development of China's banking industry.

This paper mainly uses the two-stage data envelope analysis (DEA) model under meta-frontier and group frontier to study the deposit and loan efficiency changes of 16 banks from 2007 to 2014 under ownership structure heterogeneity. Furthermore, the model introduces the balance parameters between deposits and loans, in order to realize the mathematical abstraction description of macro-monetary policy.

First, based on bank efficiency analysis, the paper finds that most banks' loan efficiency is higher than their deposits. Second, the paper concludes that different monetary policies have little effect on bank deposit and loan efficiency, while ownership heterogeneity has a significant impact on bank performance. Finally, through the decomposition of the sources of inefficiency in bank performance, this paper finds that management and technology are two factors that affect the inefficiency of banks.

The authors work contributes to the existing literature in the following ways: First, to the best of the authors’ knowledge, this is the first attempt to use the DEA model to study the relationship between monetary policies and bank supply chain efficiency. The results may provide additional managerial implications for the banking industry from the perspective of monetary policies. The result is helpful in terms of explaining how and why banks should strengthen risk management, as well as how to deal with non-performing loans in management terms and finally, why banks should make financial technology innovations in technology terms.

The purpose of this paper is to estimate the cost and profit efficiency (PE) of Chinese commercial banks in the last ten years and investigate how market power affects bank efficiency and stability.

The paper builds a stochastic frontier analysis model to evaluate the cost and PE of commercial banks. The paper then uses a Lerner index and Z-index to represent market power and stability, respectively. In addition, the paper empirically analyzes the relationship between market power and bank efficiency, stability in the last ten years.

The results show that the efficiency of banks on the Chinese mainland increased during the study period, but is still lower than that of banks in Hong Kong; moreover, the efficiency of four state-owned commercial banks is lower than that of medium and small banks. Market power has a negative relationship with efficiency while its relationship with stability varies among Chinese banks.

The results imply that the promotion of financial liberalization and banking reform to introduce an appropriate competition mechanism has had a positive effect on the efficiency and stability of Chinese commercial banks.

Thus, the paper will contribute to deepen reform and opening up the banking sector in China.

The healthy development of banking can enhance the ability of banks to withstand financial risks, to promote the harmonious development of society.

The paper estimates the cost and PE of Chinese commercial banks using SFA model and investigates how market power affects bank efficiency and stability. The study design has a certain novelty, where Lerner index and Z index are used, respectively, to measure market power and stability and management efficiency of commercial banks is investigated from two aspects – PE and cost efficiency – by the translog cost function, instead of Douglas production function. In addition, the paper tries to put some of Hong Kong banks included in the study sample, and has a certain reference value.

Efficiency of a commercial bank affects both its competitiveness and the role it plays in the process of economic development. Although great efforts have been exerted in developing the various aspects of banking efficiency, there seems to be a lack of research on examining the impact of the bank efficiency from the employee wage perspective. The mechanism of how employee wage affects commercial bank efficiency and the relationship between the two were analyzed in this paper. Based on the growing body of research on efficiency in banking, the aim of this paper is to examine if competitiveness of employee wages at any commercial bank has any impact on the bank efficiency score.

The method used was quantitative analysis, which was based on comparing the evaluated efficiencies of the banks with employee wages published in the bank reports. The empirical data in this paper were based on 16 Chinese listed commercial banks from 2004 to 2012. The per capita wage of commercial banks was selected as the wage indicator, and the efficiency value obtained by the slack-based measure (SBM) model was selected as the efficiency indicator. According to the calculated data, the Tobit regression model was built to analyze the relationship between employee wage and commercial bank efficiency.

The research results show that employee wage is the key variable that influences the efficiency of Chinese commercial banks, and the inverted U-shaped relationship between employee wage and commercial banks efficiency shows up.

The wage structure data of the composition of basic pay and bonus were not available at the time of conducting the research. Per capita wages were used instead to reflect the employee wage levels of Chinese banks.

This study can provide some help for the banking industry by analyzing the wage levels from the perspective of efficiency and also further enriches the theoretical system of the relationship between employee wage and bank efficiency.

This paper investigates the impact of credit risk shocks on the evolution of banking efficiency in China.

This paper introduces credit risk as a bad output into a bootstrap data envelopment analysis (bootstrap-DEA) model.

During a credit risk shock, the efficiency levels of both state-owned commercial banks and joint-stock commercial banks are significantly higher than those of urban/rural commercial banks, and the efficiency differences between these banks further increase during a period of economic slowdown. This paper also finds that the efficiencies of joint-stock commercial banks are the most sensitive to credit risk shocks; these banks are the first to be affected and the first to completely adjust. However, urban/rural commercial banks adjust very slowly.

Most scholars still use the traditional DEA method to estimate China's banking efficiency. The bootstrap-DEA method is clearly able to obtain a more exact estimated efficiency score. In fact, in comparison with the bootstrap-DEA model, we found that the traditional DEA method overestimates China's banking efficiency, and this is an especially serious problem for those banks that have a high efficiency score.

The purpose of this study is to examine the relative efficiency of the Islamic commercial banks (ICBs) and conventional commercial banks (CCBs) in Malaysia. The study measures and compares the level of efficiency of both ICBs and CCBs from the year 2003 to 2007.

There are ten local commercial banks selected in Malaysia, which comprise of eight CCBs and two ICBs. The study uses data envelopment analysis (DEA) to measure the relative efficiency of the selected banks in intermediating inputs into outputs. The study then analyses the difference in the average efficiency score of the ICBs and CCBs using the Mann‐Whitney U test.

This study found that the CCBs outperformed ICBs in all efficiency measures. The finding indicates that the CCBs may be more efficient than the ICBs due to managerial efficiency and technological advancement.

This study may be extended in various ways. Since, this study only covers a sample period of five years, i.e. 2003 to 2007, future research might cover more sample periods. Further studies could also take a bigger sample size by including both the domestic and foreign commercial banks.

The study indicates that the domestic commercial banks' management is well organised, reflecting the effective roles of a bank as the mediator between the savers and entrepreneurs. The technology used in the commercial banks may be up‐to‐date and fully utilised in the bank's operation. However, the commercial banks in Malaysia are facing the scale inefficiency. This means that the banks are unable to fully utilise their capabilities and capacities in generating the outputs from their resources. The findings also indicate that the scale inefficiency is the main factor that leads to the low technical efficiency in the ICBs as their size is relatively smaller than the CCBs.

This study identified the most and least efficient domestic banks and the finding could be useful to the regulators and the banks to identify the bank's ranking within the industry. Thus, it is hoped that the regulators are able to address the gap between the best and worst‐practices. The study may also improve the awareness among the least efficient banks to initiate the proactive measures in order to be sustainable in the industry.

The main purpose of this paper is to examine cost efficiencies of the selected Islamic and conventional commercial banks over the period of 2006 to 2009 in Malaysia.

Data envelopment analysis (DEA) was initially used, to investigate the cost efficiency of the Malaysian banking sector and followed by Tobit regression analysis determine factors influencing the efficiency of Islamic and conventional banks in Malaysia.

The DEA results reveal technical efficiency as the main contributor of cost efficiency for conventional commercial banks and allocative efficiency as the main contributor for cost efficiency of Islamic commercial banks. This indicates conventional commercial banks have been efficient in utilizing information technology and electronics. Islamic commercial banks conversely have been efficient in allocating and utilizing their resources. Additionally, scale efficiency is found to be the main source of technical efficiency for both Islamic and conventional commercial banks, denoting that size is important in improving bank efficiency. The results of Tobit regression analysis are twofold. First, it documents capitalization and bank sizes are positively and significantly associated to efficiency. Secondly, loan quality is found to be negatively and significantly associated to efficiency.

This paper contributes to the body of knowledge through its literature discussions on the efficiency of both Islamic and conventional banks and the effect of banks' specific characteristics on their efficiency.

Owing to the importance of the efficiency of commercial banks, the aim of this paper is to find the relationship between capital regulation, monetary policy and the asymmetric effects of the commercial banks' efficiency.

First, the paper makes a static profit model of commercial banks with double constraints and then makes a proposition with numeric simulation.

In this paper, the author finds it unreasonable to calculate the commercial banks' cost and profit efficiency by SFA (DEA) directly, as there is no evidence that indicates the linearity relationship among them. Hence, more complicated solutions should be introduced.

The rate of non‐performing loans (NPL) is inversely proportional to the commercial banks' cost and profit efficiency and capital adequacy ratio (CAR) and statutory reserve ratio (SRR) show a nonlinear relationship between commercial banks' cost and profit efficiency. Hence, the paper defines the different influences of commercial banks' efficiency imposed by CAR and SRR as the asymmetric effects of commercial banks' efficiency.

The nonlinear relationship is found based on improved Kopecky and VanHoose, so excessive regulation has harmful effects on the commercial banks. The reasonable capital regulation and other prudential supervision measures should be emphasized.

First, the paper gets its proposition through the improved KV model, which displays a new perception on analyzing this problem. Second, the nonlinear relationship is discovered by this new model and the empirical results show the nonlinear relationship further.

The economic development of Bangladesh is heavily reliant on the banking industry, yet it faces numerous hurdles, including liquidity issues, capital shortages, non-performing loans, inefficiencies and so on. Therefore, this study investigated the performance and efficiency of scheduled banks (state-owned, private commercial, foreign commercial and specialized banks) operating in Bangladesh.

The research was conducted using secondary data from annual reports of banks. The CAMELS rating system and Data Envelopment Analysis (DEA) methods were employed to measure the performance and efficiency of banks, respectively.

In the overall bank rankings, results revealed that foreign commercial Standard Chartered Bank and state-owned Sonali Bank Limited came in first and last position, respectively. Among the four categories of banks, foreign commercial banks were the best performer, while state-owned banks were the worst. Only two banks, i.e. Citibank NA and HSBC Bank, were scale efficient while the remaining banks were inefficient. In terms of performance and efficiency, state-owned and specialized banks were deemed wanting.

This study proposes recommendations to the policymakers that could lead to more effective tactics for improving the banking industry's performance and efficiency.

As far as the authors are concerned, this study presents empirical evidence on the performance and efficiency of different types of banks and explores comparisons among them, which has never been done to this extent in the country before.

The current paper's goal is to examine the productivity of the closed banking sector evidenced from Ethiopia. In addition, the inclusion of intangibles on productivity was examined in the current paper.

First, the standard Malmquist Productivity Index (MPI) was employed for 13 commercial banks for both stages. Second, by excluding the state-owned commercial bank, the analysis employed a bootstrapped MPI for the robust and comprehensive conclusion. Furthermore, from 2010 to 2019, the fixed effect Ordinary Least Square (OLS) regression with balanced panel data was used.

The standard MPI in both stages shows that the productivity of Ethiopian commercial banks is declining. The technological shock was the main reason for the loss. The catch-up in both stages scored above unity, mainly due to the pure efficiency change. Besides, when combined with tangible resources, the inclusion of resource-based view (RBV) proxy variables reduces technological shock regress and ultimately improves productivity change. The bootstrapped MPI also reveals that technological shock is the primary source of the productivity decline. However, efficiency change also contributes to the productivity decline based on this estimation.

Future research could examine the more extensive productivity analysis by considering the primary sources of data collections for resource-based variables.

According to the study's results, banking regulatory authorities and bank management, including the shareholders, should continue to invest in cutting-edge technology to improve the productivity of the banking sector.

This is the first comprehensive study of productivity for Ethiopian commercial banks based on the standard MPI, bootstrapped MPI, and OLS by incorporating all resources into the analysis.