Efficiency of Banks in Slovak Republic

Authors

HORVÁTOVÁ Eva

Year of publication 2018
Type Article in Proceedings
Conference European Financial Systems 2018. Proceedings of the 15 th International Scientific Conference
MU Faculty or unit

Faculty of Economics and Administration

Citation
Keywords technical efficiency o f banks data envelope analysis
Description The aim of this article is to examine the efficiency of Slovak banks in the time period 2000 - 2013. Slovak banking system faced serious problems connected with the process of transformation of the Slovak economy. They w ere manifested by difficulties in obtaining of long - term resources, with keeping of capital adequacy requirements and with the rapid growth of the non - performing loans. Transformation and privatization of large banks led to improvement of financial stabili ty and efficiency of banking sector. As first we used a combination of fixed assets and staff costs as input and net interest margin as output in terms of CCR and BCC - I models. In the next analysis we used the combination of three factors - fixed assets an d loan - loss provisions as inputs and volume of credits as output in terms of CCR and BCC - I models. Both cases show that the banks in Slovakia have too many fixed assets and high personnel costs with respect to the measured outputs; to the loans and to the net interest margins.
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