Abstract

GOMEZ DAZA, Jesús Ancizar  and  RIOS SAAVEDRA, Omar Alexander. Impact of risk management on bank efficiency on costs, a case applied to banks in Colombia. cuad.adm. [online]. 2016, vol.32, n.56, pp.36-49. ISSN 0120-4645.

This research quantifies the scale of technical efficiency and cost efficiency of Colombian credit institutions, especially commercial banks. This measurement is performed through the nonparametric technique DEA (Data Envelopment Analysis). In a second stage, the determinants of efficiency levels are estimated through a truncated regression (TOBIT regression). The main found out evidence shows that between 2001 and 2012, the Colombian commercial banks have generally increased their levels of technical efficiency. The most relevant result of the second stage allows us to conclude that the variables related to financial risk management come to be significant determinants of efficiency gains for Colombian banks, especially those variables related to capital adequacy (Pillar I) and other variables involved in the risk management of market, liquidity and operational risks (Pillar II) of the Basel II agreements.

Keywords : Basel II; DEA; Efficiency; Bank regulation; Risk; Tobit.

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