Efficiency of cooperative rural banks in Sri Lanka: the impact of size and location

Jayamaha, Ariyarathna and Mula, Joseph M. (2010) Efficiency of cooperative rural banks in Sri Lanka: the impact of size and location. In: 2010 Accounting & Finance Association of Australia and New Zealand Conference (AFAANZ 2010), 4-6 July 2010, Christchurch, New Zealand.

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In recent years, small financial institutions (SFIs) have become the most favoured option for poverty alleviation in developing countries. In Sri Lanka, cooperative rural banks (CRBs), as SFIs, have made significant contributions to credit provisioning and savings mobilisation during the last few decades. The efficiency of these institutions is highlighted in all aspect of stakeholders’ recently, due to the collapse of several financial institutions. This paper examines the efficiency of CRBs by using Data Envelopment Analysis (DEA). A comparative analysis of performance evaluation was undertaken to identify similarities and dissimilarities of efficiency improvements among different sizes and different locations of CRBs in Sri Lanka. The results indicate that the overall efficiency of CRBs in Sri Lanka declined over the period 2003-2005. CRBs size has a significant and positive relationship with efficiency in intermediation.

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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: No evidence of copyright restrictions on web site.
Faculty/School / Institute/Centre: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 16 Mar 2011 05:06
Last Modified: 03 Jul 2013 00:32
Uncontrolled Keywords: efficiency; small financial institutions; data envelopment analysis; cooperative rural banks
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150203 Financial Institutions (incl. Banking)
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150199 Accounting, Auditing and Accountability not elsewhere classified
Socio-Economic Objective: B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900101 Finance Services
URI: http://eprints.usq.edu.au/id/eprint/18574

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