Naslov
INVESTIGATING EFFICIENCY OF CROATIAN BANKING SECTOR - FURTHER STEPS TOWARDS MORE EFFICIENT BANKS

Autori
Kordić, Lana ; Visković, Josip

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

Izvornik
7th International Scientific Symposium GOSPODARSTVO ISTOČNE HRVATSKE - VIZIJA I RAZVOJ ECONOMY OF EASTERN CROATIA - VISION AND GROWTH / Mašek Tonković, Anka ; Crnković, Boris - Osijek : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2018, 1024-1031

Skup
7. međunarodni znanstveni simpozij: Gospodarstvo istočne Hrvatske – vizija i razvoj = 7th International Scientific Symposium: Economy of Eastern Croatia – Vision and Growth

Mjesto i datum
Osijek, Hrvatska, 24.05.2018. - 26.05.2018

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
banking sector, technical efficiency, scale efficiency, DEA technique

Sažetak
Croatian financial system is a bank-based system, where banks play a dominant role in the financing of the economy. Despite the shrinking number of banks, they still need to be competitive in order to keep their position in the market. Moreover, today’s important factor for success lies in, among others, greater efficiency as it plays a significant role in sustaining growth and competitiveness. Therefore, apprehension of a bank's relative efficiency performance in comparison to the market is important for decision makers and for that reason it is essential to keep track of efficiency. The aim of this paper is to scrutinize the efficiency of Croatian banks in 2016 in order to detect current level of efficiency, leaders on the market and efficiency targets for inputs and outputs of relatively inefficient banks. Certain insufficiencies in the accounting indicators approach to efficiency measurement can be eliminated using the Data Envelopment Analysis (DEA) approach. Therefore, this paper uses the input-oriented constant returns to scale (CCR) and input-oriented variable returns to scale (BCC) DEA models to estimate overall technical efficiency (OTE), pure technical efficiency (PTE) and scale efficiency (SE). For defining input and output variables operating approach is applied. The results for 2016 reveal that average overall technical efficiency and pure technical efficiency are between 0.88 and 0.91, due to different scale efficiency. The group of large banks proved to be more efficient than medium and small sized banks, while no significant difference was proved considering ownership of banks. Furthermore, identifying top performance on the market (Banka Kovanica and Zagrebačka banka), paper provides information on different ways to raise efficiency for relatively inefficient banks.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA