Applied Seminar

Kul Luintel

Cardiff University


Seminar 3 – 14:30


A voluminous literature examines the banking sector efficiency and productivity following deregulations and market reforms. The literature mainly employs data envelopment analysis (DEA) which is a measure of relative efficiency and does not inform if the banks on the efficient frontier are indeed operating optimally. We model banks as profit cum welfare maximizing firms and analyse their absolute efficiency. We derive, inter alia, banker’s optimal level of efforts and productivity following reforms and deregulations. Our micro-founded model is put test, employing up-to-date econometric methods, on a panel of Nepalese commercial banks. Nepal embarked into deep financial reforms during 1986-1994 and witnessed profound structural changes in her financial system. Evidence suggests that bankers’ level of efforts and banking sector productivity have improved in Nepal following financial reforms

Leave Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

clear formSubmit

This site uses Akismet to reduce spam. Learn how your comment data is processed.