THE EUROPEAN INTEGRATION PROCESS AND ITS EFFECTS ON BANKS EFFICIENCY: EVIDENCE FROM ROMANIA

Year 2012, Volume: 4 Issue: 1, 31 - 40, 01.06.2012

Bogdan Iluț Dan Chırleșan

Abstract

The structure of the banking sector of the new EU member states has registered a
definitive change as a result of the European integration process. In this context,
the aim of our paper is to investigate if the evolution of the Romanian banks
efficiency between 2002 and 2010 is in any way correlated with the European
integration process. We chose this period as it provides with a before and after
ascension look at the evolution of the efficiency of Romanian banks. Also, it
allows us to study the relationship between EU integration and the efficiency of
the banks in adverse conditions, like the ones determined by the financial and
economic crisis which has started in 2007. In order to compound the efficiency of
the banks we have used the Data Envelopment Analysis approach.

Keywords

banking integration, efficiency, Data Envelopment Analysis, Romania

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