Efficiency and scale economies in banking in new EU countries

Matousek, Roman (2008) Efficiency and scale economies in banking in new EU countries. International Journal of Monetary Economics and Finance, 1 (3). pp. 235-249. ISSN 1752-0479

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Abstract

In this paper, we provide empirical evidence on bank cost-efficiency in transition countries. Our estimates of the cost-efficiency using a distribution-free approach suggests that among the countries analysed, Estonia, Latvia and Slovenia display the highest X-efficiency while the Czech Republic and Poland show the lowest X-efficiency. Reported X-inefficiency is found to be lowest in the segment of foreign banks that were on average more efficient than other banks. The efficiency of small and foreign banks was also higher when compared with large state-owned banks. Results also indicate that economies of scale decrease with bank size.

Item Type: Article
Keywords: cost efficiency; transition economies; EU banking; European Union; Estonia; Latvia; Slovenia; Czech Republic; Poland; small banks; foreign banks; state-owned banks
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences > HG Finance > HG4001 Finance management. Business finance. Corporation finance
Depositing User: Roman Matousek
Date Deposited: 24 Sep 2012 08:13
Last Modified: 24 Sep 2012 08:13
URI: http://sro.sussex.ac.uk/id/eprint/40801
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