On the determinants of banking efficiency in four new European Union Member States: the impact of structural reforms

Mamatzakis, Emmanuel and Koutsomanoli-Filippaki, Anastasia and Staikuras, Christos (2010): On the determinants of banking efficiency in four new European Union Member States: the impact of structural reforms.

Abstract

We employ the stochastic frontier methodology and estimate alternative profit efficiency in the banking industry of four new European Union Member States, namely the Czech Republic, Hungary, Poland and the Slovak Republic, over the period 1999-2003. Our results show that structural reforms in the banking industry improve performance in terms of higher efficiency, whereas the institutional development of the non-bank financial sector hinders banks’ profit efficiency.

• Item Type: MPRA Paper
• Language: English
• Keywords: structural reforms; alternative profit inefficiency, new EU countries
• Subjects: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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