Determinants of Commercial Bank Performance in Transition : An Application of Data Envelopment Analysis
Banking sectors in transition economies have experienced major transformations throughout the 1990s. While some countries have been successful in eliminating underlying distortions and restructuring their financial sectors, in some cases financial...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/06/1808699/determinants-commercial-bank-performance-transition-application-data-envelopment-analysis http://hdl.handle.net/10986/14792 |
| id |
okr-10986-14792 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-147922021-04-23T14:03:20Z Determinants of Commercial Bank Performance in Transition : An Application of Data Envelopment Analysis Grigorian, David A. Manole, Vlad TRANSITION ECONOMIES DATA ANALYSIS BANKING SYSTEMS FINANCIAL SECTOR REFORM FINANCIAL INTERMEDIATION FINANCIAL INDICATORS FINANCIAL INSTITUTIONS MACROECONOMICS PRUDENTIAL REGULATIONS INSTITUTIONAL FRAMEWORK ENTERPRISE RESTRUCTURING FOREIGN OWNERSHIP ACCOUNTING ACCOUNTING STANDARDS ADVERSE EFFECTS AUDITING BALANCE SHEET BANK ASSETS BANK CLOSURES BANK MANAGEMENT BANK PERFORMANCE BANK REGULATORY AGENCIES BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BENCHMARK CAPITAL ADEQUACY CAPITAL MARKETS CAPITALIZATION COMMERCIAL BANKS CONSOLIDATION CONSTANT RETURNS TO SCALE CORPORATE GOVERNANCE COST FUNCTIONS DATA ENVELOPMENT ANALYSIS DECISION MAKING DEMAND DEPOSITS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVELOPED COUNTRIES EARLY WARNING SYSTEMS ECONOMIC GROWTH ECONOMIES IN TRANSITION ECONOMIES OF SCALE EMPLOYMENT EXPENDITURES FINANCIAL DATA FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FOREIGN EXCHANGE GDP GDP PER CAPITA GROWTH RATE GUIDELINES IMPERFECT COMPETITION INFLATION INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSURANCE INTEREST INCOME INTEREST RATES LIQUID ASSETS LIQUIDITY LIVING STANDARDS LOAN CLASSIFICATION LOAN LOSS PROVISIONS MACROECONOMIC STABILIZATION MARKET ECONOMIES MONETARY AUTHORITIES MORAL HAZARD OPERATING EFFICIENCY OPPORTUNITY COST PER CAPITA INCOME POLICY INSTRUMENTS PRIVATIZATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION PROFITABILITY PRUDENTIAL REGULATIONS PRUDENTIAL REQUIREMENTS PURCHASING POWER REAL SECTOR RESOURCE ALLOCATION RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SMALL BANKS STATE OWNERSHIP STOCK MARKETS T-BILLS TIME DEPOSITS TRADE LIBERALIZATION TRANSITION ECONOMIES UNDERESTIMATES VALUE ADDED Banking sectors in transition economies have experienced major transformations throughout the 1990s. While some countries have been successful in eliminating underlying distortions and restructuring their financial sectors, in some cases financial sectors remain underdeveloped and the rates of financial intermediation continue to be quite low. The authors estimate indicators of commercial bank efficiency by applying a version of Data Envelopment Analysis (DEA) to bank-level data from a wide range of transition countries. They further extend the analysis by explaining the differences in efficiency between financial institutions and countries by a variety of macroeconomic, prudential, and institutional variables. In addition to stressing the importance of some bank-specific variables, the censored Tobit analysis suggests that: 1) Foreign ownership with controlling power and enterprise restructuring enhance commercial bank efficiency. 2) The effects of prudential tightening on the efficiency of banks vary across different prudential norms. 3) Consolidation is likely to improve efficiency of banking operations. Overall, the results confirm the usefulness of DEA for transition-related applications and may shed light on the optimal architecture of a banking system. 2013-08-05T14:31:59Z 2013-08-05T14:31:59Z 2002-06 http://documents.worldbank.org/curated/en/2002/06/1808699/determinants-commercial-bank-performance-transition-application-data-envelopment-analysis http://hdl.handle.net/10986/14792 English en_US Policy Research Working Paper;No.2850 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
TRANSITION ECONOMIES DATA ANALYSIS BANKING SYSTEMS FINANCIAL SECTOR REFORM FINANCIAL INTERMEDIATION FINANCIAL INDICATORS FINANCIAL INSTITUTIONS MACROECONOMICS PRUDENTIAL REGULATIONS INSTITUTIONAL FRAMEWORK ENTERPRISE RESTRUCTURING FOREIGN OWNERSHIP ACCOUNTING ACCOUNTING STANDARDS ADVERSE EFFECTS AUDITING BALANCE SHEET BANK ASSETS BANK CLOSURES BANK MANAGEMENT BANK PERFORMANCE BANK REGULATORY AGENCIES BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BENCHMARK CAPITAL ADEQUACY CAPITAL MARKETS CAPITALIZATION COMMERCIAL BANKS CONSOLIDATION CONSTANT RETURNS TO SCALE CORPORATE GOVERNANCE COST FUNCTIONS DATA ENVELOPMENT ANALYSIS DECISION MAKING DEMAND DEPOSITS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVELOPED COUNTRIES EARLY WARNING SYSTEMS ECONOMIC GROWTH ECONOMIES IN TRANSITION ECONOMIES OF SCALE EMPLOYMENT EXPENDITURES FINANCIAL DATA FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FOREIGN EXCHANGE GDP GDP PER CAPITA GROWTH RATE GUIDELINES IMPERFECT COMPETITION INFLATION INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSURANCE INTEREST INCOME INTEREST RATES LIQUID ASSETS LIQUIDITY LIVING STANDARDS LOAN CLASSIFICATION LOAN LOSS PROVISIONS MACROECONOMIC STABILIZATION MARKET ECONOMIES MONETARY AUTHORITIES MORAL HAZARD OPERATING EFFICIENCY OPPORTUNITY COST PER CAPITA INCOME POLICY INSTRUMENTS PRIVATIZATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION PROFITABILITY PRUDENTIAL REGULATIONS PRUDENTIAL REQUIREMENTS PURCHASING POWER REAL SECTOR RESOURCE ALLOCATION RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SMALL BANKS STATE OWNERSHIP STOCK MARKETS T-BILLS TIME DEPOSITS TRADE LIBERALIZATION TRANSITION ECONOMIES UNDERESTIMATES VALUE ADDED |
| spellingShingle |
TRANSITION ECONOMIES DATA ANALYSIS BANKING SYSTEMS FINANCIAL SECTOR REFORM FINANCIAL INTERMEDIATION FINANCIAL INDICATORS FINANCIAL INSTITUTIONS MACROECONOMICS PRUDENTIAL REGULATIONS INSTITUTIONAL FRAMEWORK ENTERPRISE RESTRUCTURING FOREIGN OWNERSHIP ACCOUNTING ACCOUNTING STANDARDS ADVERSE EFFECTS AUDITING BALANCE SHEET BANK ASSETS BANK CLOSURES BANK MANAGEMENT BANK PERFORMANCE BANK REGULATORY AGENCIES BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BENCHMARK CAPITAL ADEQUACY CAPITAL MARKETS CAPITALIZATION COMMERCIAL BANKS CONSOLIDATION CONSTANT RETURNS TO SCALE CORPORATE GOVERNANCE COST FUNCTIONS DATA ENVELOPMENT ANALYSIS DECISION MAKING DEMAND DEPOSITS DEPOSIT INSURANCE DEPOSITORS DEPOSITS DEVELOPED COUNTRIES EARLY WARNING SYSTEMS ECONOMIC GROWTH ECONOMIES IN TRANSITION ECONOMIES OF SCALE EMPLOYMENT EXPENDITURES FINANCIAL DATA FINANCIAL INDICATORS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES FOREIGN EXCHANGE GDP GDP PER CAPITA GROWTH RATE GUIDELINES IMPERFECT COMPETITION INFLATION INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSURANCE INTEREST INCOME INTEREST RATES LIQUID ASSETS LIQUIDITY LIVING STANDARDS LOAN CLASSIFICATION LOAN LOSS PROVISIONS MACROECONOMIC STABILIZATION MARKET ECONOMIES MONETARY AUTHORITIES MORAL HAZARD OPERATING EFFICIENCY OPPORTUNITY COST PER CAPITA INCOME POLICY INSTRUMENTS PRIVATIZATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION PROFITABILITY PRUDENTIAL REGULATIONS PRUDENTIAL REQUIREMENTS PURCHASING POWER REAL SECTOR RESOURCE ALLOCATION RISK MANAGEMENT SAVINGS SECURITIES SECURITIES MARKETS SMALL BANKS STATE OWNERSHIP STOCK MARKETS T-BILLS TIME DEPOSITS TRADE LIBERALIZATION TRANSITION ECONOMIES UNDERESTIMATES VALUE ADDED Grigorian, David A. Manole, Vlad Determinants of Commercial Bank Performance in Transition : An Application of Data Envelopment Analysis |
| relation |
Policy Research Working Paper;No.2850 |
| description |
Banking sectors in transition economies
have experienced major transformations throughout the 1990s.
While some countries have been successful in eliminating
underlying distortions and restructuring their financial
sectors, in some cases financial sectors remain
underdeveloped and the rates of financial intermediation
continue to be quite low. The authors estimate indicators of
commercial bank efficiency by applying a version of Data
Envelopment Analysis (DEA) to bank-level data from a wide
range of transition countries. They further extend the
analysis by explaining the differences in efficiency between
financial institutions and countries by a variety of
macroeconomic, prudential, and institutional variables. In
addition to stressing the importance of some bank-specific
variables, the censored Tobit analysis suggests that: 1)
Foreign ownership with controlling power and enterprise
restructuring enhance commercial bank efficiency. 2) The
effects of prudential tightening on the efficiency of banks
vary across different prudential norms. 3) Consolidation is
likely to improve efficiency of banking operations. Overall,
the results confirm the usefulness of DEA for
transition-related applications and may shed light on the
optimal architecture of a banking system. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Grigorian, David A. Manole, Vlad |
| author_facet |
Grigorian, David A. Manole, Vlad |
| author_sort |
Grigorian, David A. |
| title |
Determinants of Commercial Bank Performance in Transition : An Application of Data Envelopment Analysis |
| title_short |
Determinants of Commercial Bank Performance in Transition : An Application of Data Envelopment Analysis |
| title_full |
Determinants of Commercial Bank Performance in Transition : An Application of Data Envelopment Analysis |
| title_fullStr |
Determinants of Commercial Bank Performance in Transition : An Application of Data Envelopment Analysis |
| title_full_unstemmed |
Determinants of Commercial Bank Performance in Transition : An Application of Data Envelopment Analysis |
| title_sort |
determinants of commercial bank performance in transition : an application of data envelopment analysis |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/06/1808699/determinants-commercial-bank-performance-transition-application-data-envelopment-analysis http://hdl.handle.net/10986/14792 |
| _version_ |
1764429952271253504 |