Luc Can

Harvard Medical School, Boston, Massachusetts, United States

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Publications (3)2.33 Total impact

  • Luc Can · Mohamed Ariff
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    ABSTRACT: This paper reports the performance of the banking sectors of four crisis-hit East Asian economies, under IMF-restructuring programs, over the pre- and post-restructuring periods. Results from the widely used structural analysis model indicate that the four banking sectors have become moderately concentrated, resulting in a narrower reach of banking services to customers. Because of governments' re-privatization of banks and the relaxation for foreign bank entry, foreign ownership has increased. Our financial analysis shows significant improvements in financial intermediation, efficiency and soundness. More special efforts, however, need to be made to regain performance levels in credit provision to the private sector, and increase depositor confidence, operating efficiency, and profitability. Our results suggest that it is imperative for policy-makers to realize and balance the trade-off between achieving financial soundness and providing private credit access. In addition, although new policy (deposit insurance) has been adopted to assure depositors of their investments, long-term measures such as better risk management practices should be in place to ensure safety and the soundness of banks, and thus the confidence of the depositors.
    Journal of the Asia Pacific Economy 02/2009; DOI:10.1080/13547860802661595 · 0.64 Impact Factor
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    Mohamed Ariff · Luc Can
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    ABSTRACT: We report new findings on bank efficiency in East Asian countries for the pre- and post-IMF restructuring periods. We find that bank efficiency has improved, but only to the pre-IMF intervention level, and that restructured banks are not more efficient than their unrestructured counterparts. Different restructuring measures have different effects. Bank closures are economically justified, but mergers show short-term efficiency losses. Recapitalization and reprivatization of badly performing banks lead to efficiency improvement, but also increase government ownership. Ease of entry that has allowed for more foreign bank participation results in slightly improved performance of badly performing banks.
    Journal of Financial Services Research 02/2009; 35(2):167-187. DOI:10.1007/s10693-008-0047-2 · 0.75 Impact Factor
  • Mohamed ARIFF · Luc CAN
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    ABSTRACT: Using a non-parametric technique for data from 1995 to 2004, we investigate the cost and profit efficiency of 28 Chinese commercial banks. We examine the influence of ownership type, size, risk profile, profitability and key environmental changes on the bank efficiency using a Tobit regression. Consistent with the existing literature, we find that profit efficiency levels are well below those of cost efficiency. This suggests that the most important inefficiencies are on the revenue side. Our findings are also consistent with prior evidence on ownership and efficiency: joint-stock banks (national and city-based), on average, appear to be more cost- and profit-efficient than state-owned banks while medium-sized banks are significantly more efficient than small and large banks. These and other results suggest the need for speedier reforms to open the banking market, improving risk management, minimizing the government's capital subsidy and diversifying ownership of Chinese banks.
    China Economic Review 06/2008; 19(2-19):260-273. DOI:10.1016/j.chieco.2007.04.001 · 0.94 Impact Factor

Publication Stats

89 Citations
2.33 Total Impact Points


  • 2009
    • Harvard Medical School
      Boston, Massachusetts, United States
    • Harvard University
      • Department of Government
      Cambridge, Massachusetts, United States
  • 2008
    • Monash University (Australia)
      Melbourne, Victoria, Australia