Regarding Thai banking industry and its efficiency, Leightner & Lovell
(1998) investigated on the impact of financial liberalization on the performance of
Thai banks. In their research, they did a study on 31 commercial and foreign banks
in Thailand in the period of 1989 to 1994. Their research revealed that when the
profit-oriented objectives of banks themselves were used, there was a growth in
total factor productivity of banks in Thailand. However, when the economicgrowth
producing objectives of the regulator, Bank of Thailand, were used, total
factor productivity declined for Thai banks and increased for foreign banks.