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The Efficiency of Cypriot Commercial Banks: A Comparison with Greece and the UK

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  • Christos S. Savva

    (Economics Research Centre, University of Cyprus)

Abstract

This study suggests that during the period 1995-2005, the average cost of Cypriot commercial banks is close to that of Greek banks, but higher than the average cost of UK commercial banks, albeit the latter difference declines over time. In addition, Cypriot (and UK) commercial banks operate in positive economies of scale, so that they can improve their competitiveness by further expansion. As far as the technological progress is concerned, Cypriot banks appear to be at the same level as the UK banks, while the Greek banks appear to have a higher rate of technological progress. The improvement in the competitiveness of the Greek banks is probably due to their lower efficiency point at the beginning of the period, thus allowing them more room to benefit from modernization.

Suggested Citation

  • Christos S. Savva, 2007. "The Efficiency of Cypriot Commercial Banks: A Comparison with Greece and the UK," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 1(2), pages 17-35, December.
    • Handle: RePEc:erc:cypepr:v:1:y:2007:i:2:p:17-35
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    File URL: https://www.ucy.ac.cy/erc/documents/Full%20Text_Savva.pdf
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    References listed on IDEAS

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    1. Ana Lozano-Vivas & Jesús Pastor & José Pastor, 2002. "An Efficiency Comparison of European Banking Systems Operating under Different Environmental Conditions," Journal of Productivity Analysis, Springer, vol. 18(1), pages 59-77, July.
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    Cited by:

    1. Sofronis Clerides, 2014. "The Collapse of the Cypriot Banking System: A Bird’s Eye View," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 8(2), pages 3-35, December.

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