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The Impact of the Global Financial Crisis on European Banking Efficiency

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  • Haider Alzubaidi
  • Spiros Bougheas

Abstract

Various measures of efficiency are calculated using the non-parametric data envelopment approach (DEA), for a sample of 255 European Union banks over the period 2005 to 2010. The results clearly indicate a fall in efficiency across the sample during the period analysed. The findings also suggest that the crisis had a differentiated impact across countries and across bank specialisations. Banks from Sweden and Denmark were the most efficient over the sample period, while the banks worst affected by the crisis were from Belgium and Denmark, followed by Ireland and Greece. Additionally, the results indicate that commercial banks were the most heavily affected in comparison to other specialisations.

Suggested Citation

  • Haider Alzubaidi & Spiros Bougheas, 2012. "The Impact of the Global Financial Crisis on European Banking Efficiency," Discussion Papers 12/05, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    • Handle: RePEc:not:notcfc:12/05
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    2. Gulati, Rachita & Kumar, Sunil, 2016. "Assessing the impact of the global financial crisis on the profit efficiency of Indian banks," Economic Modelling, Elsevier, vol. 58(C), pages 167-181.
    3. Georgios D. Papagiannis, 2014. "Measurement of Efficiency in Greek Banking Industries in The Light of the Financial Crisis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 19-38.
    4. Isik, Ihsan & Uygur, Ozge, 2021. "Financial crises, bank efficiency and survival: Theory, literature and emerging market evidence," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 952-987.
    5. Dong Xiang & Parmendra Sharma & Yuming Zhang, 2019. "The Global Financial Crisis, Fiscal Stimulus Package and the Chinese Banking Sector — A Pre- and Post-Efficiency Analysis," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 22(02), pages 1-43, June.

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