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Structural reforms and banking efficiency in the new EU States

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  • Koutsomanoli-Filippaki, Anastasia
  • Mamatzakis, Emmanuel
  • Staikouras, Christos

Abstract

This paper opts for the stochastic frontier methodology to investigate the impact of structural reforms on profit efficiency in the banking industry of four new European Union Member States over the period 1999-2003. Our findings suggest that reforms in the banking market are of vital importance for profitability, as they assert a positive impact on profit efficiency, whereas reforms in the non-bank financial sector appear to hinder profit efficiency.

Suggested Citation

  • Koutsomanoli-Filippaki, Anastasia & Mamatzakis, Emmanuel & Staikouras, Christos, 2009. "Structural reforms and banking efficiency in the new EU States," Journal of Policy Modeling, Elsevier, vol. 31(1), pages 17-21.
    • Handle: RePEc:eee:jpolmo:v:31:y:2009:i:1:p:17-21
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    Cited by:

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    3. Zuzana Irsova & Tomas Havranek, 2011. "Bank Efficiency in Transitional Countries: Sensitivity to Stochastic Frontier Design," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(2), pages 230-270, December.
    4. Samir Srairi, 2010. "Cost and profit efficiency of conventional and Islamic banks in GCC countries," Journal of Productivity Analysis, Springer, vol. 34(1), pages 45-62, August.
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    6. Dong Xiang & Abul Shamsuddin & Andrew C Worthington, 2011. "A comparative technical, cost and profit efficiency analysis of Australian, Canadian and UK banks: Feasible efficiency improvements in the context of controllable and uncontrollable factors," Discussion Papers in Finance finance:201119, Griffith University, Department of Accounting, Finance and Economics.
    7. Dong Xiang & Abul Shamsuddin & Andrew Worthington, 2015. "The differing efficiency experiences of banks leading up to the global financial crisis: A comparative empirical analysis from Australia, Canada and the UK," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(2), pages 327-346, April.
    8. Mavrakana, Christina & Psillaki, Maria, 2019. "Do economic freedom and board structure matter for bank stability and bank performance?," MPRA Paper 95709, University Library of Munich, Germany.
    9. Siriopoulos, Costas & Tziogkidis, Panagiotis, 2010. "How do Greek banking institutions react after significant events?--A DEA approach," Omega, Elsevier, vol. 38(5), pages 294-308, October.
    10. Liao, Chang-Sheng, 2023. "Deregulation, bank efficiency and economic cooperation across China–Taiwan Strait," Journal of Policy Modeling, Elsevier, vol. 45(2), pages 430-444.
    11. Otero, Luis & Razia, Alaa & Cunill, Onofre Martorell & Mulet-Forteza, Carles, 2020. "What determines efficiency in MENA banks?," Journal of Business Research, Elsevier, vol. 112(C), pages 331-341.
    12. Pilar B. Álvarez-Franco & Diego A. Restrepo-Tobón, 2016. "Managerial efficiency and failure of U.S. commercial banks during the 2007-2009 financial crisis: was this time different?," Revista Ecos de Economía, Universidad EAFIT, vol. 20(43), pages 4-22, December.
    13. Psillaki, Maria & Mamatzakis, Emmanuel, 2017. "What drives bank performance in transitions economies? The impact of reforms and regulations," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 578-594.
    14. Huang, Tai-Hsin & Chiang, Dien-Lin & Lin, Chung-I, 2017. "A new approach to estimating a profit frontier using the censored stochastic frontier model," The North American Journal of Economics and Finance, Elsevier, vol. 39(C), pages 68-77.
    15. Khan, Habib Hussain & Ahmad, Rubi Binti & Chan, Sok Gee, 2018. "Market structure, bank conduct and bank performance: Evidence from ASEAN," Journal of Policy Modeling, Elsevier, vol. 40(5), pages 934-958.
    16. Mihăiță-Cosmin M. POPOVICI, 2014. "Impact Of Financial Crisis On Banking Efficiency: Evidence From Romania," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 3, pages 451-456, April.
    17. Dong Xiang & Parmendra Sharma & Yuming Zhang, 2019. "The Global Financial Crisis, Fiscal Stimulus Package and the Chinese Banking Sector — A Pre- and Post-Efficiency Analysis," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 22(02), pages 1-43, June.
    18. Francesca Pampurini & Anna Grazia Quaranta, 2018. "Sustainability and Efficiency of the European Banking Market after the Global Crisis: The Impact of Some Strategic Choices," Sustainability, MDPI, vol. 10(7), pages 1-16, June.
    19. Hsin-Yu Liang, 2015. "Empirical Evidence on Firm-Bank Relationships in the G-8 Countries," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 9(1), pages 73-87.
    20. Anwar Al-Gasaymeh, 2020. "Economic Freedom, Country Risk and Cost Efficiency in Jordan and the GCC Countries," Global Business Review, International Management Institute, vol. 21(1), pages 1-17, February.
    21. Huang, Tai-Hsin & Chiang, Dien-Lin & Chao, Shih-Wei, 2017. "A new approach to jointly estimating the Lerner index and cost efficiency for multi-output banks under a stochastic meta-frontier framework," The Quarterly Review of Economics and Finance, Elsevier, vol. 65(C), pages 212-226.
    22. Niţoi, Mihai & Clichici, Dorina & Moagăr-Poladian, Simona, 2019. "The effects of prudential policies on bank leverage and insolvency risk in Central and Eastern Europe," Economic Modelling, Elsevier, vol. 81(C), pages 148-160.

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