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Efficiency in Banking: Empirical Evidence from the Czech Republic

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  • Roman Matoušek
  • Anita Taci

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Abstract

The paper examines the cost efficiency of the Czech-banking system in the 1990s by applying the distribution free approach model. Reported results indicate that foreign banks were on average more efficient than the other banks, although their efficiency was comparable with the ‘good’ small banks’ efficiency in early years of their operation. Based on the estimated results it is argued that early privatisation of state-owned commercial banks and more liberal policy towards foreign banks in the early stage of transition would have enhanced the efficiency in the banking system. Copyright Springer 2005
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Suggested Citation

  • Roman Matoušek & Anita Taci, 2004. "Efficiency in Banking: Empirical Evidence from the Czech Republic," Economic Change and Restructuring, Springer, vol. 37(3), pages 225-244, September.
  • Handle: RePEc:kap:ecopln:v:37:y:2004:i:3:p:225-244
    DOI: 10.1007/s10644-005-5059-4
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Iveta Palečková, 2015. "Banking efficiency in the Czech Republic and Slovakia using the DEA Window Analysis," Working Papers 0012, Silesian University, School of Business Administration.
    2. Kiril Tochkov & Nikolay Nenovsky, 2011. "Institutional Reforms, EU Accession, and Bank Efficiency in Transition Economies: Evidence from Bulgaria," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 47(1), pages 113-129, January.
    3. Matthias Köhler, 2009. "Transparency of Regulation and Cross-Border Bank Mergers Analysis of Interest Rate Differentials across the Monetary Union," International Journal of Central Banking, International Journal of Central Banking, vol. 5(1), pages 39-73, March.
    4. Anca Pruteanu-Podpiera & Jiří Podpiera, 2008. "The Czech transition banking sector instability: the role of operational cost management," Economic Change and Restructuring, Springer, vol. 41(3), pages 209-219, September.
    5. C. Spulbăr & M. Niţoi, 2014. "Determinants of bank cost efficiency in transition economies: evidence for Latin America, Central and Eastern Europe and South-East Asia," Applied Economics, Taylor & Francis Journals, vol. 46(16), pages 1940-1952, June.
    6. Andries, Alin Marius & Cocris, Vasile, 2010. "A Comparative Analysis of the Efficiency of Romanian Banks," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 54-75, December.
    7. Kauko, Karlo, 2009. "Managers and efficiency in banking," Journal of Banking & Finance, Elsevier, vol. 33(3), pages 546-556, March.
    8. Ale? Rod & Klára ?ermáková, 2016. "Retail banking in the Czech Republic ? a comparison of consumer prices between 2011 and 2014," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 5(2), pages 42-54, June.
    9. Nikolay Nenovsky & Martin Ivanov & Gergana Mihaylova, 2008. "The Evolution of Bulgarian Banks' Efficiency During the Twenties: A Dea Approach," Working Papers 82, Bank of Greece.
    10. Kiril Tochkov & Nikolay Nenovsky, 2009. "Efficiency of commercial banks in Bulgaria in the wake of EU accession," ICER Working Papers 21-2009, ICER - International Centre for Economic Research.
    11. Kiril Tochkov & Nikolay Nenovsk, 2010. "Institutional Reforms, EU Accession, and Bank Efficiency: Evidence from Bulgaria," Working Papers 201005, Texas Christian University, Department of Economics.
    12. Al-Gasaymeh, Anwar, 2016. "Bank efficiency determinant: Evidence from the gulf cooperation council countries," Research in International Business and Finance, Elsevier, vol. 38(C), pages 214-223.

    More about this item

    Keywords

    banks; Czech Republic; efficiency; transition economies; G21; G34; P20;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

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