Naslov
Measuring bank efficiency: Croatian banking sector research

Autori
Peša, Anita ; Maté, Martina ; Prvonožec, Stela

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Proceedings of 10th International Scientific Symposium Region, Entrepreneurship, Development – RED / Leko Šimić, M ; Crnković, B. - Osijek : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2021, 218-233

Skup
10th International Scientific Symposium Region, Entrepreneurship, Development (RED 2021)

Mjesto i datum
Online, 17.06.2021

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Bank efficiency, DEA model, Croatian banks

Sažetak
Interest on measuring the efficiency of banking industry has increased substantially in recent years, both for the general public and especially for researchers and regulators. Persisting fragmentation of banking sectors in European Union is still high, despite the Banking union progress. The aim of this paper is to contribute to development of methodology for measuring the efficiency of banking sector of Republic of Croatia. Main characteristics of Croatian financial sector is that it is bank- centric system and highly concentrated, with the five biggest banking institutions holding over 80% of total banking assets. More than 90% of banking sector assets are in foreign ownership, like in many other transition countries. Data for all 20 commercial banks operating in Republic of Croatia are included in this research. Non-parametric Data Envelopment Analysis (DEA) under Variable Returns on Scale (VRS) model was used to compare the efficiency results of individual banks by using different pairs of inputs and outputs in the input-oriented models. Fifteen different DEA models were developed, using different variables selected in regression analyses. Kolmogorov- Smirnov test was applied to define the selection of variables for future models. The research represents a contribution to existing researches of banking profitability in Croatia and in general. Findings of the research contribute to appropriate selection of data for the future measurement of bank efficiency in Croatia, but also in other comparable transition countries. It also provides background for future researches of banking efficiency in extended time period, using different models with other pairs of variables or in separate groups of banks according to ownership or size.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA