@inproceedings{Chantapong2005Cost,
abstract = {The paper estimates and compares cost efficiency of domestic and foreign banks in Thailand by using
bank-panel data between 1995 and 2003. It also examines the effect of foreign bank entry on banking
efficiency in Thailand since the significant acquisitions by foreign banks after the 1997 financial crisis.
The widely used translog functional form specification is statistically tested by pooled regressions. The
estimated results suggest that the unit costs of production of domestic and foreign banks are
indistinguishable, although the two types of banks focus on different areas of the banking business. The
findings suggest that based on bank operating efficiency, if foreign banks represent the best-practice banks
in the industry, to a large extent, domestic banks in Thailand have caught up to the best-practice standards
throughout 1995-2003, significantly after the 1997 financial crisis . This may be due to greater foreign
participation through acquisitions, which increases the competitive pressure in the banking industry, and
also to financial restructuring of domestic banks, which increases the cost efficiency of domestic banks,
thereby benefiting banking customers.},
author = {Saovanee Chantapong and Lukas Menkhoff},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G32; D24; G21; 330; Banks; Financial Policy; Capital and Ownership Structure; Cost Efficiency},
language = {eng},
number = {9},
series = {Proceedings of the German Development Economics Conference, Kiel 2005 / Verein f\"{u}r Socialpolitik, Research Committee Development Economics},
title = {Cost Efficiency of Domestic and Foreign Banks in Thailand: Evidence from Panel Data},
url = {http://hdl.handle.net/10419/19802},
year = {2005}
}
