Cost-effectiveness analysis of Ukrainian banks using the DEA method

Kryklii, Olena and Pavlenko, Ludmila and Podvihin, Sergei (2013): Cost-effectiveness analysis of Ukrainian banks using the DEA method. Published in: The advanced Science Journal No. 12 (December 2013): pp. 49-55.

Abstract

The purpose of this study is to determine the scale, technical and overall efficiency of the banking system of Ukraine using the DEA method in dynamics in the post-crisis period. The DEA method belongs to the group of non-parametric methods based on front’s technology analysis and allows considering the totality of impacts both the input parameters (resources) and output (products / services). The structure of banks included 24 banks of Ukraine with total assets amounted to 806.7 billion UAH (72 % of banking system assets). Banks were classified into state-owned banks and banks in which the state has a controlling interest, banks with domestic capital, banks with Russian capital and banks with foreign capital (excluding Russia). Empirical data analysis demonstrated that over the period of analysis the effectiveness of large-scale banks increased, while pure technical remained at a moderate level. Most of the banks included in the sample operate with average effective or ineffective.

• Item Type: MPRA Paper
• Language: English
• Keywords: the scale, technical and overall efficiency; the banking system; DEA method.
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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