Halkos, George and Salamouris, Dimitrios (2001): Efficiency Measures of the Greek Banking Sector: A NonParametric Approach for the Period 19971999.

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Abstract
This study explores the efficiency of the Greek Banking sector with the use of a number of suggested financial efficiency ratios for the time period 199799. A nonparametric analytic technique (Data Envelopment Analysis) is employed for measuring efficiency. The suggested model in our analysis offers an empirical reference set for comparing the inefficient banks with the efficient ones. For each year we estimate the relative efficiency and determine the feasible targets for improvement of each bank. The analysis shows that, the total improvement in efficiency in the Banking sector is mainly attributed to the increase in the efficiency ratio resulting from the significant increase in revenues mainly from their activation in the Greek Stock Exchange Market. We find that the higher the size of total assets the higher the efficiency is. We also show that the increase in efficiency is accompanied with a reduction in the number of small banks due to mergers and acquisitions.
Item Type:  MPRA Paper 

Institution:  University of Thessaly, Department of Economics 
Original Title:  Efficiency Measures of the Greek Banking Sector: A NonParametric Approach for the Period 19971999 
Language:  English 
Keywords:  Banking; Financial ratios; Data Envelopment Analysis 
Subjects:  C  Mathematical and Quantitative Methods > C6  Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C60  General M  Business Administration and Business Economics; Marketing; Accounting > M4  Accounting and Auditing > M40  General L  Industrial Organization > L2  Firm Objectives, Organization, and Behavior > L25  Firm Performance: Size, Diversification, and Scope 
Item ID:  2858 
Depositing User:  Nickolaos Tzeremes 
Date Deposited:  22. Apr 2007 
Last Modified:  11. Feb 2013 18:45 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/2858 