Author(s): Deepika Dhawan and Sushil K. Mehta
Purpose: The purpose of this paper is to look at productivity and different efficiency aspect of five developed nations in the light of phasing in of Basel III capital adequacy norms. Design/ Methodology/ Approach: The authors used data envelopment analysis technique (DEA) to measure relative efficiencies and Malmquist productivity index (MPI) to measure average total factor productivity (TFP) of 25 banks in 5 countries for the period 2013 to 2019. Findings: D-SIBs performed better in terms of technical, cost, allocation, scale, and managerial efficiency. G-SIBs ranked second while CBs ranked third in terms of relative efficiency. In terms of SE, the banks in Canada performed better while in terms of TE, ME, CE, and AE banks in USA performed better. In terms of productivity, Germany, France, and UK showed positive growth. While, USA remains constant in terms of average productivity, only Canada showed a decline in average TFP. Originality Value: Studies measuring relative efficiency of different countries that is in the same stage of implementing Basel norms are quite rare. This paper will help administrators and central bank supervisors to know how the performance of their regional counterparts is progressing and motivate them to keep at par.