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Banking Sector Efficiency: The Cases of Croatia, Serbia and Slovenia

In: Financial Systems Integration of Balkan Countries in the European Financial System: Impact of Global Crisis

Author

Listed:
  • Anastasia Ri

    (University of Nice-Sophia Antipolis, CEMAFI, France)

  • Kamilya Suleymenova

    (University of Nice-Sophia Antipolis, CEMAFI, France)

Abstract

This paper studies relative banking efficiency in three Balkan countries: Croatia, Serbia and Slovenia. Firstly, we analyze different financial transition paths which account for present situation and have an impact on efficiency. We equally go through some macro- and micro- economic indicators to make some hypothesis concerning the relative efficiency in the studied countries. Secondly, we use the Stochastic Frontier Approach (SFA) to compare banking sector efficiency. The cost efficiency is analyzed while taking into account the ownership structure. We find that Slovenian banks are globally more efficient than those of Croatia and Serbia. Finally, we demonstrate that state owned banks are generally less efficient than private banks, both foreign and domestic.

Suggested Citation

  • Anastasia Ri & Kamilya Suleymenova, 2009. "Banking Sector Efficiency: The Cases of Croatia, Serbia and Slovenia," Book Chapters, in: Claude Berthomieu & Jean-Paul Guichard & Dejan Eric & Srdjan Redzepagic (ed.), Financial Systems Integration of Balkan Countries in the European Financial System: Impact of Global Crisis, edition 1, volume 1, chapter 15, pages 128-137, Institute of Economic Sciences.
    • Handle: RePEc:ibg:chaptr:finsys-15
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    References listed on IDEAS

    as
    1. Bonin, John P., 2004. "Banking in the Balkans: the structure of banking sectors in Southeast Europe," Economic Systems, Elsevier, vol. 28(2), pages 141-153, June.
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    3. Gabriel Asaftei & Subal Kumbhakar, 2008. "Regulation and efficiency in transition: the case of Romanian banks," Journal of Regulatory Economics, Springer, vol. 33(3), pages 253-282, June.
    4. Bonin, John P. & Hasan, Iftekhar & Wachtel, Paul, 2005. "Bank performance, efficiency and ownership in transition countries," Journal of Banking & Finance, Elsevier, vol. 29(1), pages 31-53, January.
    5. Adnan Kasman & Canan Yildirim, 2006. "Cost and profit efficiencies in transition banking: the case of new EU members," Applied Economics, Taylor & Francis Journals, vol. 38(9), pages 1079-1090.
    6. Elisa Coletti & Virginia Tirri, 2005. "The Serbian Banking System: Recent Development and Major Players," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 12(2), pages 201-221, September.
    7. Hasan, Iftekhar & Marton, Katherin, 2003. "Development and efficiency of the banking sector in a transitional economy: Hungarian experience," Journal of Banking & Finance, Elsevier, vol. 27(12), pages 2249-2271, December.
    8. Fries, Steven & Taci, Anita, 2005. "Cost efficiency of banks in transition: Evidence from 289 banks in 15 post-communist countries," Journal of Banking & Finance, Elsevier, vol. 29(1), pages 55-81, January.
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