IDEAS home Printed from https://ideas.repec.org/a/agr/journl/vxxy2013i6(583)p35-52.html
   My bibliography  Save this article

Productivity change patterns in the Romanian banking system – the impact of size and ownership on total factor productivity

Author

Listed:
  • Anca MUNTEANU

    (University “Petru Maior”, Târgu Mureș)

  • Petre BREZEANU

    (The Bucharest University of Economic Studies)

  • Leonardo BADEA

    (University “Valahia”, Târgoviște)

Abstract

In this paper we analyze Romanian banking performance for the period 2006-2011 by computing a Malmquist index based on Data Envelopment Analysis. By adopting the intermediation approach in defining categories of inputs and outputs our conclusions focus on how ownership structure and size influence multi factor productivity change. Also this study aims at identifying the relatively best performing bank categories by focusing on the sources of total factor productivity (TFP) growth. The results point out the difficulty in describing a consistent pattern of efficiency changes in time for the period considered. Overall the trend of productivity growth is a descending one. Alternatively, large and small banks manage to obtain the best scores whereas most time second ranked are medium sized banks. As the efficiency scores suggest, scale efficiency and management efficiency are responsible for most of the productivity growth. In terms of the selected variables this means good financial management of liquidity (reflected by the input output ratio of loans and deposits), a well-considered ratio of interest incomes and expenses, comfortable personnel expenses corroborated with an adequate size of operations. Regarding the influence of ownership origin, the study presents evidence that foreign-owned banks outperform domestic owned banks.

Suggested Citation

  • Anca MUNTEANU & Petre BREZEANU & Leonardo BADEA, 2013. "Productivity change patterns in the Romanian banking system – the impact of size and ownership on total factor productivity," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(6(583)), pages 35-52, June.
    • Handle: RePEc:agr:journl:v:xx:y:2013:i:6(583):p:35-52
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/869.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=869&rid=99
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mihai Nitoi & Cristi Spulbar, 2016. "The Relationship between Bank Efficiency and Risk and Productivity Patterns in the Romanian Banking System," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 39-53, March.
    2. Klejda GABESHI, 2020. "The Analysis Of Bank Performance Indicators," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 5(1), pages 29-37.
    3. Maria Carmen HUIAN & Marilena MIRONIUC & Oana Iuliana MIHAI, 2018. "Studying banking performance from an accounting perspective: Evidence from Europe," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(615), S), pages 5-26, Summer.
    4. Mustafa Canakcıoglu, 2019. "Evaluation Of Banking Performance Of The Balkan Countries With An Integrated Mcdm Approach Consist Of Entropy And Ocra Techniques," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 13(1), pages 341-366.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:xx:y:2013:i:6(583):p:35-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.