The efficiency and productivity of Malaysian banks:an output distance function approach

This study employs stochastic frontier analysis to analyze Malaysian commercial banks during 1996-2002, and particularly focuses on determining the impact of Islamic banking on performance. We derive both net and gross efficiency estimates, thereby demonstrating that differences in operating characteristics explain much of the difference in outputs between Malaysian banks. We also decompose productivity change into efficiency, technical, and scale change using a generalised Malmquist productivity index. On average, Malaysian banks experience mild decreasing return to scale and annual productivity change of 2.37 percent, with the latter driven primarily by technical change, which has declined over time. Our gross efficiency estimates suggest that Islamic banking is associated with higher input requirements. In addition, our productivity estimates indicate that the potential for full-fledged Islamic banks and conventional banks with Islamic banking operations to overcome the output disadvantages associated with Islamic banking are relatively limited. Merged banks are found to have higher input usage and lower productivity change, suggesting that bank mergers have not contributed positively to bank performance. Finally, our results suggest that while the East Asian financial crisis had an interim output-increasing effect in 1998, the crisis prompted a continuing negative impact on the output performance by increasing the volume of non-performing loans

The Dynamics of the Global Monsoon: Connecting Theory and Observations

Earth's monsoons are complex systems, governed by both large-scale constraints on the atmospheric general circulation and regional interactions with continents and orography, and coupled to the ocean. Monsoons have historically been considered as distinct regional systems, and the prevailing view has been, and remains, an intuitive picture of monsoons as a form of large-scale sea breeze, driven by land-sea contrast. However, climate dynamics is seldom intuitive. More recently, a perspective has emerged within the observational and Earth system modeling communities of a global monsoon that is the result of a seasonally migrating tropical convergence zone, intimately connected to the global tropical atmospheric overturning and localized by regional characteristics. Parallel with this, over the past decade, much theoretical progress has been made in understanding the fundamental dynamics of the seasonal Hadley cells and Intertropical Convergence Zones via the use of hierarchical modeling approaches, including highly idealized simulations such as aquaplanets. Here we review the theoretical progress made, and explore the extent to which these theoretical advances can help synthesize theory with observations and understand differing characteristics of regional monsoons. We show that this theoretical work provides strong support for the migrating convergence zone picture, allows constraints on the circulation to be identified via the momentum and energy budgets, and lays out a framework to assess variability and possible future changes to the monsoon. Limitations of current theories are discussed, including the need for a better understanding of the influence of zonal asymmetries and transients on the large-scale tropical circulation

Disentangling global warming, multi-decadal variability, and El Niño in Pacific temperatures

A key challenge in climate science is to separate observed temperature changes into components due to internal variability and responses to external forcing. Extended integrations of forced and unforced climate models are often used for this purpose. Here we demonstrate a novel method to separate modes of internal variability from global warming based on differences in time scale and spatial pattern, without relying on climate models. We identify uncorrelated components of Pacific sea surface temperature variability due to global warming, the Pacific Decadal Oscillation (PDO), and the El Niño–Southern Oscillation (ENSO). Our results give statistical representations of PDO and ENSO that are consistent with their being separate processes, operating on different time scales, but are otherwise consistent with canonical definitions. We isolate the multidecadal variability of the PDO and find that it is confined to midlatitudes; tropical sea surface temperatures and their teleconnections mix in higher‐frequency variability. This implies that midlatitude PDO anomalies are more persistent than previously thought

ENSO in the Mid-Holocene according to CSM and HadCM3

The offline linearized ocean–atmosphere model (LOAM), which was developed to quantify the impact of the climatological mean state on the variability of the El Niño–Southern Oscillation (ENSO), is used to illuminate why ENSO changed between the modern-day and early/mid-Holocene simulations in two climate modeling studies using the NCAR Climate System Model (CSM) and the Hadley Centre Coupled Model, version 3 (HadCM3). LOAM reproduces the spatiotemporal variability simulated by the climate models and shows both the reduction in the variance of ENSO and the changes in the spatial structure of the variance during the early/mid-Holocene. The mean state changes that are important in each model are different and, in both cases, are also different from those hypothesized to be important in the original papers describing these simulations. In the CSM simulations, the ENSO mode is stabilized by the mean cooling of the SST. This reduces atmospheric heating anomalies that in turn give smaller wind stress anomalies, thus weakening the Bjerknes feedback. Within the ocean, a change in the thermocline structure alters the spatial pattern of the variance, shifting the peak variance farther east, but does not reduce the overall amount of ENSO variance. In HadCM3, the ENSO mode is stabilized by a combination of a weaker thermocline and weakened horizontal surface currents. Both of these reduce the Bjerknes feedback by reducing the ocean’s SST response to wind stress forcing. This study demonstrates the importance of considering the combined effect of a mean state change on the coupled ocean–atmosphere system: conflicting and erroneous results are obtained for both models if only one model component is considered in isolation

Minutes of the Annual General Meeting of the British Association for Irish Studies, 12 November 1988

Typewritten agenda for the meeting, held in London on 12 November 1988