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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.

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File URL: http://hdl.handle.net/10.1080/17520843.2012.727444
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Macroeconomics and Finance in Emerging Market Economies.

Volume (Year): 6 (2013)
Issue (Month): 1 (March)
Pages: 88-113

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Handle: RePEc:taf:macfem:v:6:y:2013:i:1:p:88-113

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Citations

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Cited by:
  1. Mamonov, Mikhail, 2012. "The impact of market power of Russian banks on their credit risk tolerance: A panel study," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 28(4), pages 85-112.
  2. 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.
  3. Ipatova, Irina & Peresetsky, Аnatoly, 2013. "Technical efficiency of Russian plastic and rubber production firms," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 32(4), pages 71-92.

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