Efficiency and Productivity Change in Greek Banking: Methods and Recent Evidence

This chapter examines the most relevant trends characterising the Greek banking sector since the early 1990s, covering the EMU period and the run-up to it. Our focus is on the studies on bank efficiency and productivity. We provide an overview of the different econometric techniques used to estimate cost and profit efficiency in banking in the context of the main recent developments in efficiency and productivity analysis. We discuss the implications of the literature in the context of the recent deregulation and consolidation waves as well as the catch-up process in the euro area. Finally, we assess the current challenges for Greek banks and identify potential new areas of research.