Abstract

The study attempts to evaluate the investment efficiency level of online banks and to make a comparison of the investment efficiency scores of banks according to group-wise, year-wise and individually. We used a panel of 20 banks dividing them into four groups namely NBs (National Banks), ISBs (Islamic Banks), FBs (Foreign Banks) and PBs (Private Banks) in Bangladesh. Using Translog stochastic frontier technique we estimated investment efficiencies of those four groups of banks. We observed that there are significant variations of efficiencies across different banks in different time periods. ISBs, FBs and PBs are found inefficient in producing investments. The estimated year wise average efficiency of the sample banks is recorded 0.431 while group wise average efficiency is 0.517. Islamic Banks are observed best performing banks in investment sector. The most investment efficient bank is Islami Bank and the least investment efficient bank is City Bank with efficiency score 0.97 and 0.11, respectively.

Keywords:

Efficiency , investment, online banks , performance, stochastic frontier analysis,

References

Competing interests

The authors have no competing interests.

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Copyright

The authors have no competing interests.