The continuous evolution of global financial markets has heightened the need for commercial banks to operate efficiently, particularly in how they manage and allocate their assets. This paper presents an econometric analysis of bank assets to assess their role in enhancing the efficiency of commercial banks. Using panel data from a selected group of commercial banks over a decade, we apply econometric models including Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) to evaluate asset allocation efficiency and productivity. The study demonstrates that the efficient deployment of assets such as loans, investments, and reserves significantly influences profitability, operational performance, and risk mitigation. Furthermore, we find that technological advancement, regulatory compliance, and risk management practices play mediating roles in determining the impact of asset structures on banking efficiency. The paper concludes by offering strategic policy implications for asset management to optimize bank performance in dynamic market environments.

Bank assets, commercial banks, efficiency, econometric analysis, DEA, SFA, asset management, financial performance.

Athanasoglou, P.P., Brissimis, S.N., & Delis, M.D. (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of International Financial Markets, Institutions and Money, 18(2), 121–136. [2008, p. 132]

Berger, A.N., & Mester, L.J. (1997). Inside the black box: What explains differences in the efficiencies of financial institutions? Journal of Banking & Finance, 21(7), 895–947. [1997, p. 908]

Bonin, J.P., Hasan, I., & Wachtel, P. (2005). Bank performance, efficiency and ownership in transition countries. Journal of Banking & Finance, 29(1), 31–53. [2005, p. 229]

Dietrich, A., & Wanzenried, G. (2011). Determinants of bank profitability before and during the crisis: Evidence from Switzerland. Journal of International Financial Markets, Institutions and Money, 21(3), 307–327. [2011, p. 318]

Ghosh, S. (2016). Banking sector globalization and bank performance: A threshold analysis. Economic Modelling, 56, 300–308. [2016, p. 304]

Kosmidou, K., Tanna, S., & Pasiouras, F. (2006). Determinants of profitability of domestic UK commercial banks: Panel evidence from the period 1995–2002. Applied Research Working Paper Series, Coventry University. [2006, p. 201]

Louzis, D.P., Vouldis, A.T., & Metaxas, V.L. (2012). Macroeconomic and bank-specific determinants of non-performing loans in Greece: A comparative study of mortgage, business and consumer loan portfolios. Journal of Banking & Finance, 36(4), 1012–1027. [2012, p. 103]

Pasiouras, F., & Kosmidou, K. (2007). Factors influencing the profitability of domestic and foreign commercial banks in the European Union. Research in International Business and Finance, 21(2), 222–237. [2007, p. 222]

Sufian, F., & Noor, M.A.N.M. (2012). Determinants of bank performance in a developing economy: Empirical evidence from the Philippines. Asian Academy of Management Journal of Accounting and Finance, 8(2), 65–80. [2012, p. 68]