Please use this identifier to cite or link to this item: https://hdl.handle.net/10321/5536
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dc.contributor.authorMsomi, Thabiso Sthembisoen_US
dc.contributor.authorOlarewaju, Odunayo Magreten_US
dc.date.accessioned2024-09-18T14:32:41Z-
dc.date.available2024-09-18T14:32:41Z-
dc.date.issued2022-11-02-
dc.identifier.citationMsomi, T. S, and Olarewaju, O. M. 2022. Dynamic panel investigation of the determinants of South African commercial banks’ operational efficiency. Banks and Bank Systems. 17(4): 35-49. doi:10.21511/bbs.17(4).2022.04en_US
dc.identifier.issn1816-7403-
dc.identifier.issn1991-7074 (Online)-
dc.identifier.urihttps://hdl.handle.net/10321/5536-
dc.description.abstractLike any other business, commercial banks are greatly affected by the micro and macro-environment that operate in, no matter how large they are. Capital adequacy ratio, credit risk, money supply, inflation, the exchange rate, and the national gross domestic product have been noted to be the key determinants of bank operational efficiency. This research study looked at the operational efficiency of four large South African banks, namely, Standard Bank, Absa, Nedbank, and First National Bank. A quantitative, descriptive, correlation design was employed, and the System-Generalized Method of Moments (SYS-GMM) techniques were used and revealed that operational efficiency was positively correlated with capital adequacy ratio, credit risk, inflation, and exchange rate, and negatively correlated with profitability, money supply and GDP. SYS-GMM estimates show that capital adequacy ratio, credit risk, inflation and exchange rate positively influenced operational efficiency, while profitability, money supply (M3) and GDP had a negative influence. Thus, it is concluded that bank management should decrease administrative costs, evaluate customers’ creditworthiness before issuing loans, raise bank size as operational conditions require, boost intermediation, and anticipate inflation to operate more efficiently.en_US
dc.format.extent17 pen_US
dc.language.isoenen_US
dc.publisherLLC CPC Business Perspectivesen_US
dc.relation.ispartofBanks and Bank Systems; Vol. 17, Issue 4en_US
dc.subject1502 Banking, Finance and Investmenten_US
dc.subject3502 Banking, finance and investmenten_US
dc.subjectOperational efficiencyen_US
dc.subjectSystem-generalized method of momentsen_US
dc.subjectCommercial Banksen_US
dc.subjectGDPen_US
dc.subjectBank capital adequacyen_US
dc.subjectCredit risken_US
dc.subjectProfitabilityen_US
dc.titleDynamic panel investigation of the determinants of South African commercial banks’ operational efficiencyen_US
dc.typeArticleen_US
dc.date.updated2024-09-18T11:47:18Z-
dc.publisher.urihttp://dx.doi.org/10.21511/bbs.17(4).2022.04en_US
dc.identifier.doi10.21511/bbs.17(4).2022.04-
item.grantfulltextopen-
item.cerifentitytypePublications-
item.fulltextWith Fulltext-
item.openairecristypehttp://purl.org/coar/resource_type/c_18cf-
item.languageiso639-1en-
item.openairetypeArticle-
Appears in Collections:Research Publications (Accounting and Informatics)
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