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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.

Suggested Citation

  • Subal Kumbhakar & Anatoly Peresetsky, 2013. "Cost efficiency of Kazakhstan and Russian banks: results from competing panel data models-super-1," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 6(1), pages 88-113, March.
  • Handle: RePEc:taf:macfem:v:6:y:2013:i:1:p:88-113
    DOI: 10.1080/17520843.2012.727444
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    1. repec:eee:ecosys:v:41:y:2017:i:2:p:305-319 is not listed on IDEAS
    2. Mamonov, Mikhail & Vernikov, Andrei, 2015. "Bank ownership and cost efficiency in Russia, revisited," BOFIT Discussion Papers 22/2015, Bank of Finland, Institute for Economies in Transition.
    3. Ipatova, Irina, 2015. "The dynamics of total factor productivity and its components: Russian plastic production," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 21-40.
    4. repec:ris:apltrx:0338 is not listed on IDEAS
    5. Adnan Kasman & Kamila Mekenbayeva, 2016. "Technical Efficiency and Total Factor Productivity in the Kazakh Banking Industry," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(4), pages 685-709, December.
    6. repec:bof:bofitp:urn:nbn:fi:bof-201508181357 is not listed on IDEAS
    7. 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.
    8. Mogilat , Anastasia & Ipatova, Irina, 2016. "Technical efficiency as a factor of Russian industrial companies’ risks of financial distress," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 42, pages 05-29.
    9. 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.
    10. repec:ris:apltrx:0339 is not listed on IDEAS
    11. 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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