Productivity Analysis of Commercial Banks of Bangladesh: A Malmquist Productivity Index Approach

Authors

  • Nusrat Jahan Adjunct Faculty Department of Business Administration, International Islamic University Chittagong, Kumira, Chittagong-4318, Bangladesh. Former Assistant Professor CIU Business School Chittagong Independent University Cell: 88-01730012472 Email: mrs_ashfaque@yahoo.com

Abstract

This study evaluated the productivity performance of 29 listed commercial banks by employing Malmquist Productivity Index (MPI) of Total Factor Productivity (TFP) over the period of 2011-2015. Evaluation of productivity performance reveals that Islamic banks, on an average, had relatively higher five year cumulative average TFP change index compared to that of Conventional banks. In addition, Islamic banks reported less variability in its TFP change index compared to Conventional banks. Productivity change index of Islamic bank indicate that it's failing to sustain the progress made in some years whereas Conventional banks though reported regress during some years but the trend remained consistent. Evaluation of productivity analysis indicates that progress made in TFP was mainly attributed to the increase in efficiency change rather than technological progress. The decomposition of the efficiency change index revealed that the source of the increment was mainly attributed to scale effect.

Keywords: Malmquist Productivity Index, Total Factor Productivity, Data Envelopment Analysis

JEL Classifications: G210, O470

DOI: https://doi.org/10.32479/ijefi.7302

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Author Biography

Nusrat Jahan, Adjunct Faculty Department of Business Administration, International Islamic University Chittagong, Kumira, Chittagong-4318, Bangladesh. Former Assistant Professor CIU Business School Chittagong Independent University Cell: 88-01730012472 Email: mrs_ashfaque@yahoo.com

Adjunct FacultyDepartment of Business Administration,International Islamic University Chittagong.Former Assistant ProfessorCIU Business SchoolChittagong Independent University

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Published

2019-01-12

How to Cite

Jahan, N. (2019). Productivity Analysis of Commercial Banks of Bangladesh: A Malmquist Productivity Index Approach. International Journal of Economics and Financial Issues, 9(1), 108–115. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/7302

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