Naslov
Regional efficiency in European Union banking industry – traditional and DEA approach

Autori
Peša, Anita ; Maté, Martina ; Jerić, Marijana

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
The Changing Financial Landscape: Financial Performance Analysis of Real and Banking Sectors in Europe

Urednik/ci
Goran Karanović, Persefoni Polychronidou, Anastasios Karasavvoglou

Izdavač
Springer

Grad
Cham

Godina
2021

Raspon stranica
123-139

ISBN
978-3-030-82777-9

ISSN
1431-1933

Ključne riječi
measure of banking efficiency, EU Member States, Mediterranean region, financial indicators, Data Envelopment Analysis

Sažetak
Efficient banking system plays an important role in entrepreneurship development. Aware that the harmonisation and diminishing of the differences is crucial for even development in EU member countries, the policymakers decided to accelerate the implementation of common banking market with establishment of Banking union. Crucial goal of BU is to reduce financial fragmentation in euro area market, attract EU Member States that are still outside of Monetary Union to join, and to lower bank compliance costs. The goal of this paper is to present the measurement results of efficiency in the banking sector markets of EU-28 member countries. We use two methods to examine the efficiency, traditional, financial indicator- based approach using ROA and ROE ratios and Data Envelopment Analysis DEA as evaluation model for calculating efficiency scores. For this purpose, the banking sectors are divided in three groups according to the amount of total assets and the efficiency is analysed for individual groups. The group of 9 wider EU Mediterranean region countries are analysed separately to found out the level of their resistance for a future crisis and to explore the weak points of each banking sector according to the selected input and output- oriented variables and DEA calculation results. Bank efficiency is calculated on the data obtained from European Central Bank for a period from 2016 to 2018. The results provided by DEA method show that the overall efficiency of banking sector in 2018 is lower than in 2017. The best efficiency results are achieved in the group of small banks and the lowest efficiency is showing in the group of large banking sectors. Also, the Mediterranean group of countries are less efficient than the rest of the countries, but the difference is not very significant.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA