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Measuring Bank Efficiency: A Meta-Regression Analysis

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  • Zuzana Iršová
  • Tomáš Havránek

Abstract

This article presents a meta-regression analysis of 32 studies on frontier efficiency measurement in banking, focusing on the sensitivity of the reported estimates to the methodological design. Our findings suggest that study design is crucial for the resulting scores. The differences between the scores estimated using parametric and non-parametric approaches arise when the Fourierflexible functional form is used since this functional form yields lower scores. Generally, the higher the number of observations, the higher is the average estimated efficiency. The removal of scale effects using equity capital increases the profit efficiency but it is insignificant for other scores. The efficiency analysis should distinguish the commercial banking from other bank types because the former tends to deliver lower efficiency scores.

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Bibliographic Info

Article provided by University of Economics, Prague in its journal Prague Economic Papers.

Volume (Year): 2010 (2010)
Issue (Month): 4 ()
Pages: 307-328

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Handle: RePEc:prg:jnlpep:v:2010:y:2010:i:4:id:379:p:307-328

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Related research

Keywords: meta-analysis; frontier models; efficiency analysis; banking;

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References

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Citations

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Cited by:
  1. Jose Peydro Alcalde & Sona Benecka & Alexis Derviz & Adam Gersl & Tomas Holub & Roman Horvath & Petr Jakubik & Narcisa Liliana Kadlcakova & Dorota Kowalczyk & Ivana Kubicova & Steven Ongena & Jakub Ry, 2012. "Financial Stability and Monetary Policy," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 2, volume 10, number rb10/2 edited by Jan Babecky & Roman Horvath.
  2. Andrew Maredza and Sylvanus Ikhide, 2013. "The Impact of the Global Financial Crisis on Efficiency and Productivity of the Banking System in South Africa," Working Papers 328, Economic Research Southern Africa.
  3. Jaromir Baxa & Michal Franta & Tomas Havranek & Roman Horvath & Miroslav Plasil & Marek Rusnak & Borek Vasicek, 2013. "Transmission of Monetary Policy," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 1, volume 11, number rb11/1 edited by Jan Babecky & Roman Horvath.
  4. Katerina Arnostova & Jozef Barunik & Jan Filacek & Michal Franta & David Havrlant & Roman Horvath & Filip Novotny & Marie Rakova & Lubos Ruzicka & Branislav Saxa & Katerina Smidkova & Peter Toth, 2012. "Macroeconomic Forecasting: Methods, Accuracy and Coordination," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 1, volume 10, number rb10/1 edited by Jan Babecky.
  5. Jan Babecky & Alena Bicakova & Alexis Derviz & Tomas Havranek & Roman Horvath & Lubos Komarek & Zlatuse Komarkova & Jakub Mateju & Ke Pang & Renata Pasalicova & Zuzana Prelcova & Marie Rakova & Pierre, 2011. "Macro-Financial Linkages: Theory and Applications," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 2, volume 9, number rb09/2 edited by Jan Babecky.
  6. Jan Babecky & Philip Du Caju & Kamil Dybczak & Kamil Galuscak & Mary Keeney & Theodora Kosma & Martina Lawless & Julian Messina & Daphne Nicolitsas & Tairi Room & Frank Smets & Pawel Strzelecki & Mati, 2010. "CNB Economic Research Bulletin: Wage Adjustment in Europe," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 2, volume 8, number rb08/2 edited by Jan Babecky & Kamil Galuscak.
  7. Jaromir Baxa & Jiri Bohm & Roman Horvath & Lubos Komarek & Petr Kral & Magdalena Morgese Borys & Filip Rozsypal & Branislav Saxa & Borek Vasicek, 2011. "Monetary Policy Analysis in a Central Bank," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, edition 1, volume 9, number rb09/1 edited by Jan Babecky & Roman Horvath.

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