BazEkon - The Main Library of the Cracow University of Economics

BazEkon home page

Main menu

Kozak Sylwester (Warsaw University of Life Sciences - SGGW, Poland), Wierzbowska Agata (Kobe University)
Bank Efficiency and Concentration of the Banking Sector in the Cee Countries
Efektywność banków a koncentracja sektora bankowego w krajach EŚW
Zeszyty Naukowe SGGW w Warszawie. Polityki Europejskie, Finanse i Marketing, 2019, nr 22 (71), s. 77-89, tab., bibliogr. 45 poz.
Scientific Journals Warsaw University of Life Sciences - SGGW. European Policies, Finance and Marketing
Efektywność banków, Sektor bankowy, Koncentracja
Banks' efficiency, Banking sector, Concentration
JEL Classification: G10, G15, G21
streszcz., summ.
Europa Środkowo-Wschodnia
Central and Eastern Europe
Zależność między strukturą rynku bankowego a efektywnością banków jest przedmiotem wielu badań od kilku dziesięcioleci. Większość z nich wskazuje na dodatnią korelację między tymi zmiennymi. Celem badania jest zbadanie tej relacji dla 96 banków działających w jedenastu krajach Europy Środkowo-Wschodniej w latach 2005-2017. Efektywność banków jest wyznaczana przy pomocy metody SFA a następnie poddana regresji względem czynników makroekonomicznych i indywidualnych dla banków. Wyniki badania wskazują, że na efektywność banków pozytywnie wpływa koncentracja rynku, a także wielkość ich aktywów. Zależność ta jest obecna we wszystkich badanych krajach. Dodatkowo stwierdzono, że na efektywność banków pozytywnie wpływa rozwój systemu bankowego. Natomiast przeciwnie, PKB pc, stopa inflacji i współczynnik kapitałowy banku nie sprzyjają wydajności banków. (abstrakt oryginalny)

The relationship between the structure of the banking market and efficiency of banks has been a subject of many studies for several decades. There is no uniform opinion on the correlation between these variables. The goal of the research is to investigate this relationship for 96 banks operating in eleven CEE countries in the years of 2005-2017. Bank efficiency scores are assessed with the SFA method and regressed with bank and macroeconomic characteristics. The results show that the efficiency of banks is positively affected by the concentration of the market on which they operate, as well as by the size of individual banks. This relationship is valid for all examined countries. Additionally, bank efficiency is positively impacted by improving the banking system. On the other hand, the GDP per capita, inflation rate and bank capital ratio are not conducive to bank efficiency. (original abstract)
Full text
  1. Anginer D., Demirguc-Kunt A., Zhu M., How Does Bank Competition Affect Systemic Stability? Policy World Bank Research Working Paper 5981/2012.
  2. Amel D., Barnes C., Panetta F., Salleo C., Consolidation and efficiency in the financial sector: A review of the international evidence. Journal of Banking and Finance vol. 28/2004.
  3. Anayiotos G., Toroyan H., Vamvakidis A., The efficiency of emerging Europe's banking sector before and after the recent economic crisis. Financial Theory and Practice vol. 34/2010.
  4. Andries A., The determinants of bank efficiency and productivity growth in the central and eastern European banking systems. Eastern European Economics vol. 49(6)/2011.
  5. Andries A., Ursu S, Financial crisis and bank efficiency: An empirical study of European banks. Economic Research-Ekonomska Istrazivanija vol. 29(1)/2016.
  6. Avkiran N., The evidence on efficiency gains: The role of mergers and the benefits to the public. Journal of Banking and Finance vol. 23(7)/1999.
  7. Avramidis P., Cabolis Ch., Serfes K., Bank size and market value: The role of direct monitoring and delegation costs. Journal of Banking and Finance vol. 93/2018.
  8. Bain J., Relation of Profit Rates to Industry Concentration. Quarterly Journal of Economics vol. 55/1951.
  9. Battese G., Coelli T., A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics vol. 20/1995.
  10. Berger A., The profit-structure relationship in banking - tests of market-power and efficientstructure hypotheses. Journal of Money, Credit and Banking vol. 27/1995.
  11. Berger A., Demsetz R., Strahan P., The consolidation of the financial services industry: Causes, consequences, and implications for the future. Journal of Banking and Finance vol. 23/1999.
  12. Berger A., Hannan T., The Price-Concentration Relationship in Banking. The Review of Economics and Statistics vol. 71/1989.
  13. Berger A., Mester L., Inside the black box: What explains differences in the efficiencies of financial institutions? Journal of Banking and Finance vol. 21/1997.
  14. Berger A., Hasan I., Zhou M., Bank ownership and efficiency in China: what will happen in the world's largest nation? Journal of Banking and Finance vol. 33/2009.
  15. Bikker J., Haaf K., Competition, concentration and their relationship: An empirical analysis of the banking industry. Journal of Banking and Finance vol. 26 (11)/2002.
  16. Casu B., Girardone C., Bank competition, concentration and efficiency in the single European market. The Manchester School vol. 74(4)/2002.
  17. Claessens S., Laeven L., What drives bank competition? Some international evidence. Journal of Money, Credit and Banking vol. 36(3)/2004.
  18. Demirgüç-Kunt A., Laeven L., Levine R., Regulations, market structure, institutions, and the cost of financial intermediation. Journal of Money, Credit and Banking vol. 36(3)/2004.
  19. Demsetz H., Industry structure, market rivalry, and public policy. Journal of Law and Economics vol. 16/1973.
  20. Duygun M., Sena V., Shaban M., Schumpeterian competition and efficiency among commercial banks. Journal of Banking and Finance vol. 37/2013.
  21. Efthyvoulou G., Yildirim C., Market power in CEE banking sectors and the impact of the global financial crisis. Journal of Banking and Finance vol. 40/2014.
  22. Financial Stability Report. December 2018, The National Bank of Poland, Warsaw 2018.
  23. Fu X., Lin Y., Molyneux P., Bank competition and financial stability in Asia Pacific. Journal of Banking and Finance vol. 38/2014, p. 64-77.
  24. Fungacova Z., Solanko L., Weill L., Does competition influence the bank lending channel in the Euro area? Journal of Banking and Finance vol. 49/2014, p. 356-366.
  25. Garcia-Herrero, A., Gavila, S., Santabarbara, D., What explains the low profitability of Chinese banks? Journal of Banking and. Finance vol. 33/2009, p. 2080-2092.
  26. Gilbert R., Bank market structure and competition. Journal of Money, Credit, and Banking vol. 16/1984.
  27. Haynes M., Thompson S., The productivity effects of bank mergers: Evidence from the UK building societies. Journal of Banking and Finance vol. 23/1999.
  28. Homma T., Tsutsui Y., Uchida H., Firm growth and efficiency in the banking industry: A new test of the efficient structure hypothesis. Journal of Banking and Finance vol. 40/2014.
  29. Koutsomanoli-Filippaki A., Margaritis D., Staikouras C., Efficiency and productivity growth in the banking industry of Central and Eastern Europe. Journal of Banking and Finance vol. 33/2009.
  30. Koutsomanoli-Filippaki A., Staikouras C., Competition and concentration in the New European banking Landscape. Working Paper Department of Accounting and Finance, Athens University of Economics and Business 2014, Greece.
  31. Lensink R., Meesters A., Naaborg I., Bank efficiency and foreign ownership: Do good institutions matter? Journal of Banking and Finance vol. 32/2008.
  32. Lozano-Vivas A., Pasiouras F., The impact of non-traditional activities on the estimation of bank efficiency: International evidence. Journal of Banking and Finance vol. 34/2010.
  33. Mamatzakis E., Matousek R., Vu A.N., What is the impact of bankrupt and restructured loans on Japanese bank efficiency? Journal of Banking and Finance vol. 72/2017.
  34. Mason E., Price and Production Policies of Large-Scale Enterprise. American Economic Review vol. 29(1)/1939.
  35. Maudos J., Fernandez de Guevara J., Factors explaining the interest margin in the banking sectors of the European Union. Journal of Banking and Finance vol. 28/2014, p. 2259-2281.
  36. Mesa R., Sánchez H., Sobrino J., Main determinants of efficiency and implications on banking concentration in the European Union. Spanish Accounting Review vol., 17(1)/2014.
  37. Niţoi M., Spulbar C., An Examination of Banks' Cost Efficiency in Central and Eastern Europe. Procedia Economics and Finance vol. 22/2015.
  38. Peng J., Jeng V., Wang J., Chen Y., The impact of bancassurance on efficiency and profitability of banks: Evidence from the banking industry in Taiwan. Journal of Banking and Finance vol. 80/2017.
  39. Poghosyan T., Poghosyan A., Foreign bank entry, bank efficiency and market power in Central and Eastern European Countries. Economics of Transition vol. 18(3)/2010.
  40. Rhoades S., Efficiency effects of horizontal (in-market) bank mergers. Journal of Banking and Finance vol. 17(2-3)/1993.
  41. Schaeck K., Cihak M., How does Competition Affect Efficiency and Soundness in Banking? New Empirical Evidence. European Central Bank Working Paper No. 932/2008.
  42. Schaeck K., Cihak M., Wolf S., Are competitive banking systems more stable? Journal of Money, Credit and Banking vol. 41/2009, p. 711-734.
  43. Silva T., Guerra S., Tabak B., de Castro Miranda R., Financial networks, bank efficiency and risktaking. Journal of Financial Stability vol. 25(C)/2016.
  44. Tabak B., Tazio D., Cajueiro D., The relationship between banking market competition and risktaking: do size and capitalization matter? Journal of Banking and Finance vol. 36/2012, p. 3366- 3381.
  45. Tuskan B., Stojanovic A., Measurement of cost efficiency in the European banking industry. Croatian Operational Research Review vol. 47/2016.
Cited by
Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on LinkedIn Wyślij znajomemu