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Author:Fang, Y.
Hasan, I.
Marton, K.
Title:Bank efficiency in South-Eastern Europe
Journal:Economics of transition
2011 : JUL, VOL. 19:3, p. 495-520
Index terms:banks
efficiency
markets
power
transition economies
cost effectiveness
profit
models
surveys
Freeterms:foreign ownership
institutional development
South-Eastern Europe
Language:eng
Abstract:The article is based on the cost and profit efficiency of banking sectors in six transition countries of South-Eastern Europe from 1998 to 2008. Using a stochastic frontier approach, there are found the following: 1) The foreign banks are characterized by higher profit efficiency but lower cost efficiency and government-owned banks are associated with lower profit efficiency than domestic private banks. 2) The efficiency gap between foreign-, domestic private- and government-owned banks narrows over time. 3) The market power of a bank has a positive association with both cost and profit efficiency.
SCIMA record nr: 274031
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