Bank efficiency in the new European Union member states: Is there convergence?

Mamatzakis, Emmanuel, Staikouras, Christos and Koutsomanoli-Filippaki, Anastasia (2008) Bank efficiency in the new European Union member states: Is there convergence? International Review of Financial Analysis, 17 (5). pp. 1156-1172. ISSN 10575219

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Abstract

We employ the stochastic frontier approach and estimate a common frontier in order to examine cost and profit efficiency in the banking systems of the ten new European Union member states over the period 19982003. The results indicate a generally low level of cost and an even lower level of profit efficiency, whilst we do not observe marked differences of inefficiency scores across countries. Foreign banks outperform both state-owned and domestic private-owned banks in terms of profit efficiency, though results are less clear in the case of cost efficiency. In addition, - and -convergence criteria indicate some convergence in cost efficiency across the new member states, yet no convergence appears to have been achieved in terms of profit efficiency.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Business and Management
Depositing User: Emmanuel Mamatzakis
Date Deposited: 06 Feb 2012 19:47
Last Modified: 06 Jun 2012 10:56
URI: http://sro.sussex.ac.uk/id/eprint/22183
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