The impact of deregulation and re-regulation on bank efficiency: evidence from Asia

Following the 1997 crisis, banking sector reforms in Asia have been characterised by the emphasis on prudential regulation, associated with increased financial liberalisation. Using a panel data set of commercial banks from eight major Asian economies over the period 2001-2010, this study explores how the coexistence of liberalisation and prudential regulation affects banks’ cost characteristics. Given the presence of heterogeneity of technologies across countries, we use a stochastic frontier approach followed by the estimation of a deterministic meta-frontier to provide ‘true’ estimates of bank cost efficiency measures. Our results show that the liberalization of bank interest rates and the increase in foreign banks' presence have had a positive and significant impact on technological progress and cost efficiency. On the other hand, we find that prudential regulation might adversely affect bank cost performance. When designing an optimal regulatory framework, policy makers should combine policies which aim to foster financial stability without hindering financial intermediation.

HMEF: framework to evaluate merging of Higher Education Institutions – application of Enterprise Architecture

Mergers of Higher Education Institutions (HEIs) are organisational processes requiring tremendous amount of resources, in terms of time, work, and money. A number of mergers have been seen on previous years and more are to come. Several studies on mergers have been conducted, revealing some crucial factors that affect the success of mergers. Based on literature review on these studies, factors are: the initiator of merger, a reason for merger, geographical distance of merging institutions, organisational culture, the extend of overlapping course portfolio, and Quality Assurance Systems (QASs). Usually these kind of factors are not considered on mergers, but focus is on financial matters. In this paper, a framework (HMEF) for evaluating merging of HEIs is introduced. HMEF is based on Enterprise Architecture (EA), focusing on factors found to be affecting the success of mergers. By using HMEF, HEIs can focus on matters that crucial for merging.