Cost efficiency of the banking industry in the South Eastern European region

By Christos Staikouras, Emmanuel C. Mamatzakis, A. Koutsomanoli-Filippaki. 2008

154 citations recorded by the source corpus.

This paper analyses cost efficiency in the banking sector of six South Eastern European countries over the period 1998-2003. A stochastic frontier approach, incorporating firm-specific and country-related variables, indicates a generally low level of cost efficiency, with significant inefficiency differences among countries. Foreign banks and banks with higher foreign bank ownership involvement are associated with lower inefficiency. Furthermore, we observe a negative correlation of cost inefficiency with bank capitalization and firm market share, and a positive one with the fraction of loans in the asset portfolio.

Subfields: Accounting, Finance, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/86977321abfd9001e1ce01105e5446b50a255916

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Citations in the corpus

Efficiency of Turkish banking: Two-stage network system. Variable returns to scale model (2011, methodology): “This is also in contrast with other studies from emerging economies and particularly from transition countries Fries and Taci (2005), Staikouras et al. (2008).”
Efficiency in the Vietnamese banking system: A DEA double bootstrap approach (2016, methodology): “…increased competition and mergers and acquisitions to enhance the efficiency and productivity of the banking system, and to speed up a country’s financial development and economic growth (Bonin et al., 2005; Fries and Taci, 2005; Staikouras et al., 2008; Huang et al., 2015 and Ghosh, 2015).”
Evolution of bank efficiency in Brazil: A DEA approach (2010, result): “In their previous work (Staikouras et al. ( 2008)), similar findings were achieved when analyzing six South Eastern European countries, but significant inefficiency differences were observed among them.”
A Comparison of Performance of Islamic and Conventional Banks 2004 to 2009 (2014, background): “While their precise effects are unknown a priori , previous evidence, derived from studies of conventional banks, has shown a positive relationship between GDP growth and banking efficiency (Staikouras et al. 2008; Awdeh and El Moussawi 2009).”
Cost and profit efficiency of conventional and Islamic banks in GCC countries (2010, background): “This is consistent with the findings of Staikouras et al. (2008) and Perera et al. (2007).”