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Efficiency Analysis Of Banking Sector In Republic Of Serbia

Author

Listed:
  • Radojko LUKIC

    (University of Belgrade, Belgrade, Serbia)

  • Miro SOKIC

    (Dunav Insurance Company a.d.o., Belgrade, Serbia)

  • Dragana Vojteski KLJENAK

    (Faculty of Business Economics and Entrepreneurship, Belgrade, Serbia)

Abstract

Efficiency of the banking sector has, due to its significance, lately been increasingly analysed by individual countries, through the application of modern economic and mathematical methods and models. This is the case with the banking sector in the Republic of Serbia, as well. For this particular reason, the paper deals in a 2016 efficiency analysis of the banking sector of the Republic of Serbia by applying the Data Envelopment Analysis (DEA) analysis. The obtained results of the survey conducted on the sample of thirty (30) banks show that only eight (8) banks were business efficient. With the view of increasing the future business efficiency of the entire banking sector (in particular of the inefficient banks),it is necessary to more efficiently manage the assets and liabilities, human resources, capital, operating income and profit. Moreover, there is a need for a more efficient cost management through the application of modern concepts, such as cost accounting by activities and/or Japanese business philosophy.

Suggested Citation

  • Radojko LUKIC & Miro SOKIC & Dragana Vojteski KLJENAK, 2017. "Efficiency Analysis Of Banking Sector In Republic Of Serbia," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(4), pages 5-17, December.
    • Handle: RePEc:rom:bemann:v:7:y:2017:i:4:p:5-17
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    References listed on IDEAS

    as
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    2. Biener, Christian & Eling, Martin & Wirfs, Jan Hendrik, 2016. "The determinants of efficiency and productivity in the Swiss insurance industry," European Journal of Operational Research, Elsevier, vol. 248(2), pages 703-714.
    3. Snežana Knežević & Milanka Marković & Andrijana Brown, 2015. "Measuring the efficiency of Serbian insurance companies," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(1), pages 91-105, March.
    4. Cummins, J. David & Weiss, Mary A. & Xie, Xiaoying & Zi, Hongmin, 2010. "Economies of scope in financial services: A DEA efficiency analysis of the US insurance industry," Journal of Banking & Finance, Elsevier, vol. 34(7), pages 1525-1539, July.
    5. Taboada, Alvaro G., 2011. "The impact of changes in bank ownership structure on the allocation of capital: International evidence," Journal of Banking & Finance, Elsevier, vol. 35(10), pages 2528-2543, October.
    6. Nilüfer Dalkılıç & Ayşen Altun Ada, 2014. "Efficiencies of Life/Pension Insurance Industry in Turkey: An Application of Data Envelopment Analysis," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 4(1), pages 1-10.
    7. Lih Ru Chen & Michael J. McNamara, 2014. "An Examination of the Relative Efficiency of Fraternal Insurers," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 37(1), pages 1-31.
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    Cited by:

    1. Violeta Cvetkoska & Katerina Fotova Čiković & Marija Tasheva, 2021. "Efficiency of Commercial Banking in Developing Countries," Mathematics, MDPI, vol. 9(14), pages 1-21, July.
    2. Radojko LUKIC, 2024. "Economic Performance of the Economy of Kosovo and Metohija," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 120-137, February.

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