Privatization, intermediation and performance: global evidence

This study compares the performances of privatized banks from 43 countries during 1992–2007 by using two matching theories, Nearest-Neighbor Matching and Mahalanobis Metric Matching. The evidence demonstrates the following: first, the privatized banks outperform non-privatized banks in terms of return on equity, net interest margin and non-performance loan but are tied in terms of return on asset; second, in most cases, full privatization is more effective than partial privatization in improving bank performance; third, the results demonstrate that privatization through asset sales yield a better performance.