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Cost efficiency of Kazakhstan and Russian banks: results from competing panel data models-super-1

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  • Subal Kumbhakar
  • Anatoly Peresetsky

Abstract

In this paper, we estimate cost efficiency of the Kazakhstan and Russian banks. A stochastic frontier approach based on a panel data for 2002--6 is used. The Kazakhstan banking system is traditionally assumed to be more advanced compared to the Russian system. Empirically we do not find any significant differences in the cost efficiency of banks between these two countries during the period of our study. This result is found to be quite robust across several alternative and competing models. We also find that many of the banks in both countries operate below their optimal size.

Suggested Citation

  • Subal Kumbhakar & Anatoly Peresetsky, 2013. "Cost efficiency of Kazakhstan and Russian banks: results from competing panel data models-super-1," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 6(1), pages 88-113, March.
    • Handle: RePEc:taf:macfem:v:6:y:2013:i:1:p:88-113
    DOI: 10.1080/17520843.2012.727444
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    3. Mikhail Mamonov, 2013. "Bad management, skimping, or both? The relationship between cost efficiency and loan quality in Russian banks," HSE Working papers WP BRP 19/FE/2013, National Research University Higher School of Economics.
    4. Mikhail Mamonov & Andrei Vernikov, 2015. "Bank Ownership And Cost Efficiency In Russia, Revisited," HSE Working papers WP BRP 46/FE/2015, National Research University Higher School of Economics.
    5. Mamonov, Mikhail, 2012. "The impact of market power of Russian banks on their credit risk tolerance: A panel study," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 28(4), pages 85-112.
    6. repec:zbw:bofitp:2015_022 is not listed on IDEAS
    7. Belousova, Veronika & Karminsky, Alexander & Kozyr, Ilya, 2018. "The macroeconomic and institutional determinants of the profit efficiency frontier for Russian banks," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 49, pages 91-114.
    8. Ибрагимова Найля Мурадовна, 2015. "Эмпирическая Оценка Эффективности Ндфл И Ндс В Узбекистане," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 19(1), pages 81-103.
    9. repec:zbw:bofitp:urn:nbn:fi:bof-201508181357 is not listed on IDEAS
    10. Ipatova, Irina, 2015. "The dynamics of total factor productivity and its components: Russian plastic production," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 21-40.
    11. Vernikov, Andrei & Mamonov, Mikhail, 2018. "Modelling technical efficiency of firms under one-step and two-step approaches (the case of commercial banks)," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 49, pages 67-90.
    12. Mamonov, Mikhail & Vernikov, Andrei, 2015. "Bank ownership and cost efficiency in Russia, revisited," BOFIT Discussion Papers 22/2015, Bank of Finland Institute for Emerging Economies (BOFIT).
    13. Adnan Kasman & Kamila Mekenbayeva, 2016. "Technical Efficiency and Total Factor Productivity in the Kazakh Banking Industry," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(4), pages 685-709, December.
    14. Mogilat , Anastasia & Ipatova, Irina, 2016. "Technical efficiency as a factor of Russian industrial companies’ risks of financial distress," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 42, pages 05-29.
    15. Maziotis, Alexandros & Molinos-Senante, Maria, 2022. "The impact of model specification and environmental variables on measuring the overall technical efficiency of water and sewerage services: Evidence from Chile," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 191-198.
    16. Ipatova, Irina & Peresetsky, Аnatoly, 2013. "Technical efficiency of Russian plastic and rubber production firms," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 32(4), pages 71-92.

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