Effect of ownership on bank performance in South Asian countries – A cross country comparison among Bangladesh, India and Sri Lanka.

Abstract

Despite drastic reforms in the banking systems in Bangladesh, India, and Sri Lanka fewer studies have been conducted to investigate the performance dynamics and the effect of ownership on bank performance in these countries. Particularly, a cross country comparison is not available for the selected countries. This study drawing upon the experiences of these countries assesses the effect of ownership on the revenue performance of banks measured using data envelopment analysis. The findings suggest that foreign banks outperform their domestic counterparts in terms of revenue efficiency. Further, domestic private banks are constrained in various aspects so that they record least performances in each of the selected country.