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Journal of Eastern Europe Research
in Business & Economics
Bank Efficiency Evaluation: Evidence from a Panel of Romanian Banks
Angela Roman and Alina Camelia Șargu
Department of Economics and Business Administration, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University, Iasi, Romania
Volume 2012 (2012), Article ID 592822, Journal of Eastern Europe Research in Business & Economics, 14 pages DOI: 10.5171/2012.592822
Copyright ©
2012 Angela Roman and Alina Camelia Șargu.This is an open
access article distributed under the Creative Commons
Attribution License unported 3.0, which permits unrestricted use,
distribution, and reproduction in any medium, provided that original
work is properly cited.
Abstract
The
focus of our research is on the Romanian banking sector, analysing if,
over the period 2002 to 2009, foreign banks have been more efficient
than their domestic peers, as foreign banks can benefit from the
experience and superior know-how of their parent banks and thus achieve
a superior organisation and management process. To reach this aim, we
have used the Data Envelopment Analysis approach, estimating the cost,
allocative, technical, pure technical and scale efficiencies; and
afterwards we have conducted also a series of parametric and
non-parametric tests in order to establish if foreign and domestic
banks are coming from the same population. The results of the paper
underline the fact that in the Romanian banking market, foreign banks
are truly more efficient than the domestic ones for being able to
better use their advantages and obtain a higher productivity of their
inputs. Moreover, during the researched period the efficiency of the
banking sector has not been improved, mainly as a consequence of the
financial crisis.
Keywords: Romanian banks, Data Envelopment Analysis, cost efficiency.
Keywords: Romanian banks, Data Envelopment Analysis, cost efficiency.
