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Cost-effectiveness analysis of Ukrainian banks using the DEA method

Author

Listed:
  • Kryklii, Olena
  • Pavlenko, Ludmila
  • Podvihin, Sergei

Abstract

The purpose of this study is to determine the scale, technical and overall efficiency of the banking system of Ukraine using the DEA method in dynamics in the post-crisis period. The DEA method belongs to the group of non-parametric methods based on front’s technology analysis and allows considering the totality of impacts both the input parameters (resources) and output (products / services). The structure of banks included 24 banks of Ukraine with total assets amounted to 806.7 billion UAH (72 % of banking system assets). Banks were classified into state-owned banks and banks in which the state has a controlling interest, banks with domestic capital, banks with Russian capital and banks with foreign capital (excluding Russia). Empirical data analysis demonstrated that over the period of analysis the effectiveness of large-scale banks increased, while pure technical remained at a moderate level. Most of the banks included in the sample operate with average effective or ineffective.

Suggested Citation

  • Kryklii, Olena & Pavlenko, Ludmila & Podvihin, Sergei, 2013. "Cost-effectiveness analysis of Ukrainian banks using the DEA method," MPRA Paper 60481, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60481
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    References listed on IDEAS

    as
    1. Nazin, Vladimir, 2010. "Nonparametric estimates of technical efficiency of Russian banks and crisis impact," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 20(4), pages 28-52.
    2. Tamer Mohamed Shahwan & Yousef Mohammed Hassan, 2013. "Efficiency analysis of UAE banks using data envelopment analysis," Journal of Economic and Administrative Sciences, Emerald Group Publishing, vol. 29(1), pages 4-20, February.
    3. Andries, Alin Marius & Cocris, Vasile, 2010. "A Comparative Analysis of the Efficiency of Romanian Banks," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 54-75, December.
    4. Tamer Mohamed Shahwan & Yousef Mohammed Hassan, 2013. "Efficiency analysis of UAE banks using data envelopment analysis," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 29(1), pages 4-20, May.
    5. Muhammad, Tanko, 2008. "A DEA Analysis of Bank Performance in Nigeria," MPRA Paper 33560, University Library of Munich, Germany.
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    More about this item

    Keywords

    the scale; technical and overall efficiency; the banking system; DEA method.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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