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A Comparative Analysis of the Efficiency of Romanian Banks

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  • Andries, Alin Marius

    ()
    (Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration)

  • Cocris, Vasile

    ()
    (Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration)

Abstract

In this paper, we analyze the efficiency of the main banks in Romania, the Czech Republic and Hungary for the period 2000-2006, by using the frontier analysis. For the estimation of efficiency of banking we used a nonparametric method – the DEA Method (Data Envelopment Analysis) and a parametric method - the SFA Method (Stochastic Frontier Analysis). The results of the analyses show that the banks in the three East-European countries reach low levels of technical efficiency and cost efficiency, especially the ones in Romania, and that the main factors influencing the level of banks efficiency in these countries are: quality of assets; bank size, annual inflation rate; banking reform and interest rate liberalisation level and form of ownership.

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Bibliographic Info

Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): (2010)
Issue (Month): 4 (December)
Pages: 54-75

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Handle: RePEc:rjr:romjef:v::y:2010:i:4:p:54-75

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Keywords: efficiency; banking; DEA method; SFA method;

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References

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Citations

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Cited by:
  1. Magdalena Radulescu & Marinela Tanascovici, 2012. "Profitability of the CEE Banking Systems During the Crisis Period," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(1), pages 274-291.
  2. Iveta Repkova, 2013. "Estimation of Banking Efficiency in the Czech Republic: Dynamic Data Envelopment Analysis," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 261-275, December.
  3. Mihăiță-Cosmin M. POPOVICI, 2013. "A Survey On Bank Efficiency Research With Data Envelopment Analysis And Stochastic Frontier Analysis," SEA - Practical Application of Science, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 1, pages 134-142, June.
  4. Jose L. Gallizo & Jordi Moreno & Ioana Iuliana Pop (Grigorescu), 2011. "Banking Efficiency And European Integration. Implications Of The Banking Reform In Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 25.
  5. Adela Socol & Adina Elena Danuletiu, 2013. "Analysis Of The Romanian Banks‘ Performance Through Roa, Roe And Non-Performing Loans Models," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 24.
  6. Mihăiță-Cosmin M. Popovici, 2013. "Latest Challenges In Efficiency Convergence In Balkan And Baltic Countries," Network Intelligence Studies, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 2, pages 110-118, October.
  7. repec:cmj:journl:y:2013:i:27:popovicimc is not listed on IDEAS

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