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Banking efficiency in the Czech Republic and Slovakia using the DEA Window Analysis

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  • Iveta Palečková

    () (Department of Finance and Accounting, School of Business Administration, Silesian University)

Abstract

The aim of this paper is to apply the Data Envelopment Analysis (DEA) window analysis on the data of the Czech and Slovak commercial banks and to examine the banking efficiency of the Czech Republic and Slovakia during the period 2004-2013. The paper employed an extended DEA approach, specifically DEA window analysis for the efficiency assessment of commercial banks in the Czech Republic and Slovakia. It is based on panel data for the period from 2004 to 2013. In the Czech banking sector, the average efficiency under constant return to scale reached 66-79% and average efficiency under variable return to scale reached 77-90%. The most efficient bank were GE Money Bank and Sberbank. The lowest efficient bank was Československá obchodní banka. The group of large bank (Československá obchodní banka, Česká spořitelna and Komerční banka) was lower efficient than other banks in the banking sector. In Slovakia, the average efficiency under constant return to scale reached 77-91% and average efficiency under variable return to scale reach 83-94%. The most efficient banks were OTP, Postova banka, UniCredit Bank and Istrobanka. The lowest efficient banks were found Privatbanka and Citibank. Whereas during the period 2003-2008 the average efficiency was increasing, during the period 2010-2011 the average efficiency decreased as a result of financial crisis.

Suggested Citation

  • Iveta Palečková, 2015. "Banking efficiency in the Czech Republic and Slovakia using the DEA Window Analysis," Working Papers 0012, Silesian University, School of Business Administration.
  • Handle: RePEc:opa:wpaper:0012
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    data envelopment analysis; window analysis; banking sector; Czech Republic; Slovakia; commercial bank;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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