Naslov
The application of the non-parametric methodology DEA in the Croatian banking sector

Autori
Fotova Čiković, Katerina ; Smoljić, Mirko ; Lozić, Joško

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

Izvornik
Book of Proceedings- 71st International Scientific Conference on Economic and Social Development Development / Gregurec, Iva, Dukic, Darko, Nedzhad, Abdelhamid - Online, 2021, 113-127

Skup
71st International Scientific Conference Economic and Social Development (ESD 2021)

Mjesto i datum
Online, 06.08.2021

Vrsta sudjelovanja
Ostalo

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
DEA ; data envelopment analysis ; literature review ; Croatia ; banking sector ; bank efficiency ; relative efficiency

Sažetak
Banks are the most important financial institutions and intermediaries in any economy and they are especially important in bank- centric financial systems. In the Republic of Croatia, banks play a dominant role in the financial system, with total assets of 408, 6 billion kuna and a share of almost 70% in the total assets of the financial sector in 2018. In such a bank-based financial system, the efficient and profitable operations of banks are even more important. Banking sectors impact the entire financial system and its stability, thus influencing the stability and growth of the national economy. Evaluating banks' performance is of key importance due to its strong and positive relationship with financial growth and stability. This article aims to present the leading non-parametric DEA methodology, its main application, advantages over traditional models and its limitations. Furthermore, the goal is to provide an extensive literature review, to elaborate and sublimate the findings regarding the efficiency of Croatian banks with the application of DEA and to raise awareness and knowledge of academics, practitioners and policymakers on how to measure banking efficiency. Ever since its introduction and development by Charnes et al. (1978), the application of DEA has noted continuous growth and interest from academics and practitioners all over the world. This article analyzes and presents 8 articles and researches of bank efficiency in Croatia, as well as 12 cross- country studies (which also cover the Croatian banking sector). We have based our research primarily on the search for Croatian scientists who are registered in the Croatian scientific bibliography (CROSBI), but also the Croatian and non-Croatian researchers who authored a relevant DEA-related publication regarding the Croatian banking sector. The findings indicate that most of the studies were conducted for the period between 2002-2015, while there is a lack of research regarding the efficiency of the Croatian banking sector before the 2000s and after 2017. This fact will give guidance for future research in this area and will mark future trends of DEA applications in banking efficiency measurement and efficiency evaluation in general.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA