A comparative study of efficiency in European banking

Casu, Barbara; Molyneux, Philip

doi:10.1080/0003684032000158109

Cited by 422 publications

(317 citation statements)

References 25 publications

(26 reference statements)

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“…A large number of studies have specifically analysed differences at bank efficiency levels across the EU countries. Casu and Molyneux (2003), in their early study on bank integration, conclude that there is evidence that EU banks have converged. Similar results are reported by Barros at al.…”

Section: Introductionmentioning

confidence: 99%

“…Indeed, most studies on bank efficiency discuss findings that pre-date the crisis (see Altunbas (2001), Casu and Molyneux (2003), Casu and Girardone (2006), Goddard et al (2007), Barros et al (2007), Brissimis et al (2010) among others). Our study not only addresses the above-mentioned gap but we also advance the methodological approach on how to estimate bank efficiency.…”

Section: Introductionmentioning

confidence: 99%

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Bank efficiency, productivity, and convergence in EU countries: a weighted Russell directional distance model

Fujii

Managi

Matoušek

et al. 2017

The European Journal of Finance

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Abstract:The objective of this study is three-fold. First we estimate and analyse bank efficiency and productivity changes in the EU28 countries with the application of a novel approach, a weighted Russell directional distance model. Second, we take a disaggregated approach and analyse the contribution of the individual bank inputs on bank efficiency and productivity growth. Third, we test for convergence in EU28 bank productivity as well as in the inefficiency of individual bank inputs. We find that bank efficiency has been undermined by the financial crisis in banks notably from the EU15 countries. We also argue that bank efficiency and productivity in EU countries vary across the banking sector with banks from the 'old' EU showing higher efficiency levels. Nonetheless, a noticeable catching up process is observed for banks from the 'new' EU countries. Consequently, we do not find evidence of group convergence for bank productivity but there is evidence of convergence in bank efficiency change and technical change among the EU28 countries throughout the period 2005-2014. The driving force seems to be convergent technical change from the old EU Member States' banks.On the other hand, almost no convergence is detected for the banks' individual inputs while the transition paths show heightened diversity during the crisis years.JEL Classification: G21; D21; G23; C11

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Bank efficiency, productivity, and convergence in EU countries: a weighted Russell directional distance model

Fujii

Managi

Matoušek

et al. 2017

The European Journal of Finance

View full text Add to dashboard Cite

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“…The first category consists of single country focused studies and covers US Banks (Rangan et al 1988;Ferrier and Lovell 1990;Mehdian 1990, 1992;Aly et al 1990;Yue 1992;Miller and Noulas 1996;Kwon and Lee 2015), UK Banks (Drake 2001;Webb 2003;Webb et al 2010;Tanna et al 2011), Italian Banks (Favero and Papi 1995), Turkish Banks (Zaim 1995;Kutlar et al 2017), Japanese Banks (Fukuyama 1993;Liu and Tone 2008), Taiwanese Banks (Chen 1998;Liu 2018), Hong Kong Banks (Drake et al 2006), Singaporean Banks (Chu and Lim 1998), Indian Banks (Bhattacharyya et al 1997), Mozambique Banks (Wanke et al 2016), and Korean Banks (Lee et al 2017). The second category consists of multi-country focused studies and covers banks in several countries such as US, Australian, New Zealand, Austrian, Spanish, German, UK, Italian, Belgian, French, Danish, Luxembourg, Dutch, and Portuguese Banks (e.g., Pastor et al 1997;Pastor 2002;Lozano-Vivas et al 2002;Casu and Molyneux 2003;Pasiouras 2008;Avkiran 2009). …”

Section: Landscape Of Research On Efficiency Assessment In Bankingmentioning

confidence: 99%

Assessing efficiency profiles of UK commercial banks: a DEA analysis with regression-based feedback

Ouenniche

Carrales

2018

Ann Oper Res

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Data envelopment analysis (DEA) has witnessed increasing popularity in banking studies since 1985. In this paper, we propose a new DEA-based analysis framework with a regression-based feedback mechanism, where regression analysis provides DEA with feedback that informs about the relevance of the inputs and the outputs chosen by the analyst. Unlike previous studies, the DEA models used within the proposed framework could use both inputs and outputs, only inputs, or only outputs. So far, the UK banking sector remains relatively under researched despite its crucial importance to the UK economy. We use the proposed framework to address several research questions related to both the efficiency of the UK commercial banking sector and DEA analyses with and without regression-based feedback. Empirical results suggest that, on average, the commercial banks operating in the UK-whether domestic or foreign-are yet to achieve acceptable levels of overall technical efficiency, pure technical efficiency, and scale efficiency. On the other hand, DEA analyses with and without a linear regression-based feedback mechanism seem to provide consistent findings; however, in general DEA analyses without feedback tend to over-or under-estimate efficiency scores depending on the orientation of the analyses. Furthermore, in general, a linear regression-based feedback mechanism proves effective at improving discrimination in DEA analyses unless the initial choice of inputs and outputs is well informed.Keywords Data envelopment analysis · Efficiency · UK commercial banks · DEA models without explicit inputs · DEA models without explicit outputs

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“…Actually, the combination has been applied in the empirical study of other fields. For example, Casu and Molyneux (2003) [3]calculated the relative efficiency scores for 530 European Banks. Taking the efficiency scores as the explained variable, they then analyze the factors affecting the efficiency, with Tobit model.…”

Section: Quantitative Methods For Analysis Of Nismentioning

confidence: 99%

Factors Affecting the Efficiency of the BRICSs' National Innovation Systems: A Comparative Study Based on Dea and Panel Data Analysis

Cai

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. (2) In accordance with the NIS approach and the new growth theory, there are many factors that affect the NISs including ICT infrastructure, enterprise R&D, market environment, governance, education systems, economic scale, natural endowments, and external dependence. (3) Enterprise innovation is of particular importance for the NISs. To improve the efficiency of innovation systems, efforts should be made to improve the market conditions, governance, and financial structures, and create a sound environment for R&D. (4) ICT infrastructure, economic scale, and openness affect the diffusion of knowledge and technology, and in turn affect NIS efficiency. (5) The BRICS have low governance levels and a high dependency on natural resources, both of which are determined by their stage of development and extensive growth patterns. To avoid the socalled middle-income trap, the BRICS should transform their factor-driven growth patterns into innovation-driven growth patterns. China still needs to improve its ICT infrastructure, its governance systems, and its education system. During its 12th five-year plan, more effort should be devoted to these fields and to improving external conditions for R&D. Terms of use: Documents inJEL O30, O57, P52

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A comparative study of efficiency in European banking

Cited by 422 publications

References 25 publications

Bank efficiency, productivity, and convergence in EU countries: a weighted Russell directional distance model

Bank efficiency, productivity, and convergence in EU countries: a weighted Russell directional distance model

Assessing efficiency profiles of UK commercial banks: a DEA analysis with regression-based feedback

Factors Affecting the Efficiency of the BRICSs' National Innovation Systems: A Comparative Study Based on Dea and Panel Data Analysis

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