The Effects of the Global Financial Crisis on Brazilian Banking Efficiency

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Auteur principal: Mark Edward Wolters
Format: Artículo científico
Langue:en
Publié: Universidad Nacional de Colombia 2014
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author Mark Edward Wolters
author_facet Mark Edward Wolters
contents The Effects of the Global Financial Crisis on Brazilian Banking Efficiency Mark Edward Wolters Eduardo Barbosa do Couto José Augusto Felício Administración y Contabilidad DEA Brazil Banking Efficiency Quiet Life With Brazil and the BRIC economies becoming more important to world growth and financial investment, it is important to understand the inner-workings of the financial institutions that will help spur on continued economic growth. This article focuses on the recent history of the market structure of the Brazilian banking sector as well as the effects of the global financial crisis of the late 2000s on the overall relative efficiency of the Brazilian banking sector by using Data Envelopment Analysis. The period studied—2002-2011—shows a marked decrease in overall relative efficiency in the Brazilian banking sector. The negative effects were felt across the board regardless of bank size or ownership type. Small and medium sized banks had the most significant drop in relative efficiency while larger banks were able to weather the crisis more successfully. This alludes to the idea that “Bigger is Better” when dealing with financial shocks to banking efficiency, and would allow us to summarize that the Brazilian banking sector is not participating in the “Quiet Life” of concentrated markets. Also, looking at ownership type, the study shows that Brazilian banks that are controlled by the government were ranked as the most efficient types of banks. Their foreignowned counterparts, however, were ranked as the least efficient and had a larger drop in overall efficiency and participation during the financial crisis than their domestic Brazilian counterparts. The article contributes to the continued need for more information on the Brazilian banking sector’s history and development. 2014 artículo científico 0121-5051 https://www.redalyc.org/articulo.oa?id=81831420003 en http://www.redalyc.org/revista.oa?id=818 INNOVAR. Revista de Ciencias Administrativas y Sociales application/pdf Universidad Nacional de Colombia INNOVAR. Revista de Ciencias Administrativas y Sociales (Colombia) Num.53 Vol.24
format Artículo científico
id redalyc_81831420003
institution Redalyc
language en
publishDate 2014
publisher Universidad Nacional de Colombia
spellingShingle The Effects of the Global Financial Crisis on Brazilian Banking Efficiency
Mark Edward Wolters
Administración y Contabilidad
DEA
Brazil
Banking
Efficiency
Quiet Life
The Effects of the Global Financial Crisis on Brazilian Banking Efficiency Mark Edward Wolters Eduardo Barbosa do Couto José Augusto Felício Administración y Contabilidad DEA Brazil Banking Efficiency Quiet Life With Brazil and the BRIC economies becoming more important to world growth and financial investment, it is important to understand the inner-workings of the financial institutions that will help spur on continued economic growth. This article focuses on the recent history of the market structure of the Brazilian banking sector as well as the effects of the global financial crisis of the late 2000s on the overall relative efficiency of the Brazilian banking sector by using Data Envelopment Analysis. The period studied—2002-2011—shows a marked decrease in overall relative efficiency in the Brazilian banking sector. The negative effects were felt across the board regardless of bank size or ownership type. Small and medium sized banks had the most significant drop in relative efficiency while larger banks were able to weather the crisis more successfully. This alludes to the idea that “Bigger is Better” when dealing with financial shocks to banking efficiency, and would allow us to summarize that the Brazilian banking sector is not participating in the “Quiet Life” of concentrated markets. Also, looking at ownership type, the study shows that Brazilian banks that are controlled by the government were ranked as the most efficient types of banks. Their foreignowned counterparts, however, were ranked as the least efficient and had a larger drop in overall efficiency and participation during the financial crisis than their domestic Brazilian counterparts. The article contributes to the continued need for more information on the Brazilian banking sector’s history and development. 2014 artículo científico 0121-5051 https://www.redalyc.org/articulo.oa?id=81831420003 en http://www.redalyc.org/revista.oa?id=818 INNOVAR. Revista de Ciencias Administrativas y Sociales application/pdf Universidad Nacional de Colombia INNOVAR. Revista de Ciencias Administrativas y Sociales (Colombia) Num.53 Vol.24
title The Effects of the Global Financial Crisis on Brazilian Banking Efficiency
topic Administración y Contabilidad
DEA
Brazil
Banking
Efficiency
Quiet Life
url https://www.redalyc.org/articulo.oa?id=81831420003