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A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS

Year 2012, Volume: 4 Issue: 1, 11 - 20, 01.06.2012

Abstract

The European integration process has had a great impact on the macroeconomic
environment of the new member states, some effects being more visible than
other. In this context it becomes interesting to analyse if the EU ascension has
triggered an increase of the banks efficiency from a series of CEE countries (two
from the first wave and one from the second wave of EU expansion). The
analysed period is between 2003 and 2010, covering the first years after the EU
ascension of these countries. In order to estimate the efficiency of the banks from
our sample we have used a non-parametric technique, namely the Data
Envelopment Analysis. The overall results are suggesting that there is a slight
increase of the banks operating in these countries estimated efficiency between
2007 and 2010.

References

  • Banker, R., Charnes, A. and Cooper, W.W. (1984), “Some Models for Estimating Technical and Scale Efficiencies in Data Envelopment Analysis”, Management Science. vol. 30, pp. 1078-92.
  • Berg, A., Forsund, F.R., Hjarmarsson, L. and Suominen, M. (1993), “Banking Efficiency in the Nordic Countries”, Journal of Banking and Finance. vol. 17, pp. 371-88.
  • Berger, A.N. and Humprey, D.B. (1997), “Efficiency of Financial Institutions: International Survey and Directions for Future Research”, European Journal of Operations Research, vol. 98, pp. 175-212.
  • Charnes, A., Cooper, W. and Rhodes, E. (1978), “Measuring the Efficiency of Decision Making Units”, European Journal of Operations Research, pp. 429-44.
  • Dietsch, M. and Weill, L. (2000), The Evolution of Cost and Profit Efficiency in the European Banking Industry, in Hasan, I. and Hunter, C. (eds) Advances in Banking and Finance, vol. 1 (London: JAI Press).
  • ECB, 2010, Statistical Data Warehouse,
  • http://sdw.ecb.europa.eu/browse.do?node=2116082 [Accessed 10.03. 2012]
  • Fang, Y., Hasan, I., Marton, K. (2011), “Bank efficiency in transition economies: recent evidence from South-Eastern Europe”, Bank of Finland Research Discussion Papers, no. 5.
  • Farrell, M.J. (1957), “The Measurement of Productive Efficiency, Journal of the Royal Statistical Society (Series A) ”, vol. 120, pp. 253-81.
  • Fink G., Haiss P. and Mantler H. C. (2004), “Financial sector macro efficiency: Concepts, measurement, theoretical and empirical evidence”, (in: Balling M., Lierman F. and Mullineux A. (eds.), Financial Markets in Central and Eastern Europe. Stability and efficiency perspectives, Routledge: SUERF), pp. 61-98.
  • Grigorian, D.A. and Manole, V. (2002), “Determinants of Commercial Bank Performance in Transition: An Application of Data Envelopment Analysis“, (Washington, D.C.: World Bank).
  • Leibenstein, H. (1966), “Allocative Efficiency vs. X-Efficiency”, American Economic Review, vol. 56, pp. 392-415.
  • Sealey, C.W. and Lindley, J.T. (1977), “Inputs, Outputs and a Theory of Production and Cost at Depository Financial Institutions”, Journal of Finance, vol. 32, pp. 1251-66. Stavárek, D. (2002), Essential Methods of Banks. Efficiency Measuring, In Future of the Banking after the Year 2 000 in the World and in the Czech Republic. V. Comparison of the Banking Sector in Transition Economies.(Karviná: Silesian University), pp. 98-110.
  • Stavárek, D. and Polouček, S. (2003), “Efficiency and Profitability in the Banking Sector”, (in Polouček, S. (ed.), Reforming the Financial Sector in Central European Countries, Houndmills: Palgrave Macmillan), pp. 75-135.
  • Stavarek, D. (2005), “Efficiency of Banks in Regions at Different Stage of European Integration Process”, Finance 0502020, EconWPA.
  • Toçi, V. Z. (2009), “Efficiency of banks in South-East Europe: with special reference to Kosovo”, CBK Working Paper, no. 4.
Year 2012, Volume: 4 Issue: 1, 11 - 20, 01.06.2012

Abstract

References

  • Banker, R., Charnes, A. and Cooper, W.W. (1984), “Some Models for Estimating Technical and Scale Efficiencies in Data Envelopment Analysis”, Management Science. vol. 30, pp. 1078-92.
  • Berg, A., Forsund, F.R., Hjarmarsson, L. and Suominen, M. (1993), “Banking Efficiency in the Nordic Countries”, Journal of Banking and Finance. vol. 17, pp. 371-88.
  • Berger, A.N. and Humprey, D.B. (1997), “Efficiency of Financial Institutions: International Survey and Directions for Future Research”, European Journal of Operations Research, vol. 98, pp. 175-212.
  • Charnes, A., Cooper, W. and Rhodes, E. (1978), “Measuring the Efficiency of Decision Making Units”, European Journal of Operations Research, pp. 429-44.
  • Dietsch, M. and Weill, L. (2000), The Evolution of Cost and Profit Efficiency in the European Banking Industry, in Hasan, I. and Hunter, C. (eds) Advances in Banking and Finance, vol. 1 (London: JAI Press).
  • ECB, 2010, Statistical Data Warehouse,
  • http://sdw.ecb.europa.eu/browse.do?node=2116082 [Accessed 10.03. 2012]
  • Fang, Y., Hasan, I., Marton, K. (2011), “Bank efficiency in transition economies: recent evidence from South-Eastern Europe”, Bank of Finland Research Discussion Papers, no. 5.
  • Farrell, M.J. (1957), “The Measurement of Productive Efficiency, Journal of the Royal Statistical Society (Series A) ”, vol. 120, pp. 253-81.
  • Fink G., Haiss P. and Mantler H. C. (2004), “Financial sector macro efficiency: Concepts, measurement, theoretical and empirical evidence”, (in: Balling M., Lierman F. and Mullineux A. (eds.), Financial Markets in Central and Eastern Europe. Stability and efficiency perspectives, Routledge: SUERF), pp. 61-98.
  • Grigorian, D.A. and Manole, V. (2002), “Determinants of Commercial Bank Performance in Transition: An Application of Data Envelopment Analysis“, (Washington, D.C.: World Bank).
  • Leibenstein, H. (1966), “Allocative Efficiency vs. X-Efficiency”, American Economic Review, vol. 56, pp. 392-415.
  • Sealey, C.W. and Lindley, J.T. (1977), “Inputs, Outputs and a Theory of Production and Cost at Depository Financial Institutions”, Journal of Finance, vol. 32, pp. 1251-66. Stavárek, D. (2002), Essential Methods of Banks. Efficiency Measuring, In Future of the Banking after the Year 2 000 in the World and in the Czech Republic. V. Comparison of the Banking Sector in Transition Economies.(Karviná: Silesian University), pp. 98-110.
  • Stavárek, D. and Polouček, S. (2003), “Efficiency and Profitability in the Banking Sector”, (in Polouček, S. (ed.), Reforming the Financial Sector in Central European Countries, Houndmills: Palgrave Macmillan), pp. 75-135.
  • Stavarek, D. (2005), “Efficiency of Banks in Regions at Different Stage of European Integration Process”, Finance 0502020, EconWPA.
  • Toçi, V. Z. (2009), “Efficiency of banks in South-East Europe: with special reference to Kosovo”, CBK Working Paper, no. 4.
There are 16 citations in total.

Details

Other ID JA98VJ36CT
Journal Section Articles
Authors

Alina Camelia Şargu This is me

Angela Roman This is me

Publication Date June 1, 2012
Published in Issue Year 2012 Volume: 4 Issue: 1

Cite

APA Şargu, A. C., & Roman, A. (2012). A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS. International Journal of Economics and Finance Studies, 4(1), 11-20.
AMA Şargu AC, Roman A. A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS. IJEFS. June 2012;4(1):11-20.
Chicago Şargu, Alina Camelia, and Angela Roman. “A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS”. International Journal of Economics and Finance Studies 4, no. 1 (June 2012): 11-20.
EndNote Şargu AC, Roman A (June 1, 2012) A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS. International Journal of Economics and Finance Studies 4 1 11–20.
IEEE A. C. Şargu and A. Roman, “A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS”, IJEFS, vol. 4, no. 1, pp. 11–20, 2012.
ISNAD Şargu, Alina Camelia - Roman, Angela. “A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS”. International Journal of Economics and Finance Studies 4/1 (June 2012), 11-20.
JAMA Şargu AC, Roman A. A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS. IJEFS. 2012;4:11–20.
MLA Şargu, Alina Camelia and Angela Roman. “A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS”. International Journal of Economics and Finance Studies, vol. 4, no. 1, 2012, pp. 11-20.
Vancouver Şargu AC, Roman A. A COMPARATIVE STUDY OF EFFICIENCY IN CENTRAL AND EASTERN EUROPEAN BANKING SYSTEMS. IJEFS. 2012;4(1):11-20.