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Efficiency of transition banks: inter-country banking industry trends

Author

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  • Karligash Kenjegalieva
  • Richard Simper
  • Thomas Weyman-Jones

Abstract

This study investigates the trend of X-(in) efficiencies across Eastern European 2004-accession countries' banking industries over the period 1999 to 2003. We use Data Envelopment Analysis (DEA) estimators to obtain proxies for X-(in)efficiencies and we then analyse the inter-country industry differences using the methodology of Simar and Zelenyuk (2007) and the impact of country-specific environmental conditions, following Simar and Wilson's (2007) truncated regression with bootstrap methodology. Overall, the results suggest that Eastern European banking had considerable scope for X-efficiency improvements. However, the results also demonstrate that the efficiency gap between the sample countries declined over the period, and fewer environmental factors contributed to the difference in the banking efficiency levels.

Suggested Citation

  • Karligash Kenjegalieva & Richard Simper & Thomas Weyman-Jones, 2009. "Efficiency of transition banks: inter-country banking industry trends," Applied Financial Economics, Taylor & Francis Journals, vol. 19(19), pages 1531-1546.
    • Handle: RePEc:taf:apfiec:v:19:y:2009:i:19:p:1531-1546
    DOI: 10.1080/09603100902984343
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    References listed on IDEAS

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    1. K. Dimitrova & Nikolay Nenovsky, 2003. "Deposits insurance during EU accession," Post-Print halshs-00259788, HAL.
    2. Damien Neven, 2002. "Bank Performance in Transition Economies," IHEID Working Papers 07-2002, Economics Section, The Graduate Institute of International Studies.
    3. Igor Jemric & Boris Vujcic, 2002. "Efficiency of Banks in Croatia: A DEA Approach*," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 44(2-3), pages 169-193, September.
    4. Igor Jemrić & Boris Vujčić, 2002. "Efficiency of Banks in Croatia: A DEA Approach," Working Papers 7, The Croatian National Bank, Croatia.
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    Citations

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    Cited by:

    1. Emília Zimková, 2016. "Technical Efficiency and Profitability of Services in Banking: an Application of Managerial Decision-Making Matrix," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(6), pages 2183-2190.
    2. Francesca Pampurini & Anna Grazia Quaranta, 2018. "Sustainability and Efficiency of the European Banking Market after the Global Crisis: The Impact of Some Strategic Choices," Sustainability, MDPI, vol. 10(7), pages 1-16, June.
    3. Natalya Zelenyuk & Valentin Zelenyuk, 2014. "Regional and Ownership Drivers of Bank Efficiency," CEPA Working Papers Series WP112014, School of Economics, University of Queensland, Australia.
    4. Özlem O. Akdeniz & Hussein A. Abdou & Ali I. Hayek & Jacinta C. Nwachukwu & Ahmed A. Elamer & Chris Pyke, 2024. "Technical efficiency in banks: a review of methods, recent innovations and future research agenda," Review of Managerial Science, Springer, vol. 18(11), pages 3395-3456, November.
    5. Sulaeman Rahman Nidar & Mokhamad Anwar & Ratna Komara & Layyinaturrobaniyah Layyinaturrobaniyah, 2020. "Determinant of regional development bank efficiency for their sustainability issues," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 1133-1145, September.
    6. Natalya Zelenyuk & Valentin Zelenyuk, 2015. "Productivity Drivers of Efficiency in Banking: Importance of Model Specifications," CEPA Working Papers Series WP082015, School of Economics, University of Queensland, Australia.
    7. Martin Boďa & Emília Zimková, 2015. "Efficiency in the Slovak Banking Industry: A Comparison of Three Approaches," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(4), pages 434-451.
    8. Edwards, Erwin Elliot & Iyare, O.S. & Moseley, L.L., 2012. "Energy consumption in typical Caribbean office buildings: A potential short term solution to energy concerns," Renewable Energy, Elsevier, vol. 39(1), pages 154-161.
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