IDEAS home Printed from
   My bibliography  Save this book chapter

Deteriorating Cost Efficiency in a Bank Signals the Risk of Failure

In: CNB Financial Stability Report 2005


  • Anca Podpiera
  • Jiri Podpiera


The banking sector is a dominant component of the financial system in the Czech Republic. The stability of the banking system is of key importance as regards the financial stability of the economy as a whole. Any turbulence in the banking system can, moreover, generate a need for additional fiscal expenses in this area. For these reasons it is important to analyse banking sector developments in more detail and to attempt to enhance the early warning system toolkit – bank ratings, in order to prevent bank failures more effectively. This article sets out to describe a potentially usable concept of cost efficiency for more objective measurement of banks' management quality and demonstrates that this indicator is a good indicator of bank failure.

Suggested Citation

  • Anca Podpiera & Jiri Podpiera, 2006. "Deteriorating Cost Efficiency in a Bank Signals the Risk of Failure," Occasional Publications - Chapters in Edited Volumes,in: CNB Financial Stability Report 2005, chapter 0, pages 102-105 Czech National Bank, Research Department.
  • Handle: RePEc:cnb:ocpubc:fsr05/4

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cnb:ocpubc:fsr05/4. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jan Babecky). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.