Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
963282 | Journal of International Financial Markets, Institutions and Money | 2008 | 15 Pages |
Abstract
This paper analyses cost efficiency in the banking sector of six South Eastern European countries over the period 1998–2003. A stochastic frontier approach, incorporating firm-specific and country-related variables, indicates a generally low level of cost efficiency, with significant inefficiency differences among countries. Foreign banks and banks with higher foreign bank ownership involvement are associated with lower inefficiency. Furthermore, we observe a negative correlation of cost inefficiency with bank capitalization and firm market share, and a positive one with the fraction of loans in the asset portfolio.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Christos Staikouras, Emmanuel Mamatzakis, Anastasia Koutsomanoli-Filippaki,