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Efficiency in the Czech banking industry: A non-parametric approach

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  • Daniel Stavárek

    (Katedra financí, Slezská univerzita v Opavě, Obchodně podnikatelská fakulta v Karviné, Univerzitní náměstí 1934/3, 733 40 Karviná, Česká republika)

  • Iveta Řepková

    (Katedra financí, Slezská univerzita v Opavě, Obchodně podnikatelská fakulta v Karviné, Univerzitní náměstí 1934/3, 733 40 Karviná, Česká republika)

Abstract

This paper estimates the efficiency of the Czech commercial banks in the period 2001-2010 using the non-parametric Data Envelopment Analysis. We simultaneously use two alternative specifications - CCR model and BCR model - that differ in returns to scale assumption. Differences in estimated efficiency scores of individual banks are quite large up to 70 percentage points. Largest banks perform significantly worse than mid-size and small banks. This efficiency gap decreases if variable returns to scale are considered in the estimation. The average efficiency in the banking sector remained nearly unchanged during the analysed period. Although each year is estimated separately one can observe a deterioration of average efficiency during the recent crisis period.

Suggested Citation

  • Daniel Stavárek & Iveta Řepková, 2012. "Efficiency in the Czech banking industry: A non-parametric approach," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(2), pages 357-366.
    • Handle: RePEc:mup:actaun:actaun_2012060020357
    DOI: 10.11118/actaun201260020357
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    References listed on IDEAS

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    Cited by:

    1. Vesna Micajkova, 2015. "Determinants of Macedonian Banks Efficiency," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(2), pages 123-130.

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