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A study of the banks’ efficiency in crisis: Empirical evidence from Eastern Europe, Balkans and Turkey
- Source :
- Journal of Governance and Regulation, Vol 7, Iss 3, Pp 8-12 (2018)
- Publication Year :
- 2018
- Publisher :
- Publishing house "Virtus Interpress", 2018.
-
Abstract
- This study focuses on the efficiency measures of banking institutions from sixteen Eastern European countries, the Balkans and Turkey. Authors use a two-step approach to study the efficiency of banks at the regional level during the critical period 2007-2011. First, the study examines whether banks are actively operating differently at a regional level during the under-review period to focus on the development of the crisis. Secondly, authors use the performance measure (Technical Efficiency -TM) that was obtained from the analysis using basic banking accounting characteristics such as capital ratios, assets quality, leverage, liquidity, and operations financial ratio as independent variables. Authors also use Global Governance Indicators to describe the ability of the respective governments to formulate effectively and properly policies related to Political Stability and the Rule of Law. Their results suggest that bank accountant and managers of all regions should focus upon profit efficiency, proper capitalization, in order to increase their banks’ profitability. In all regions, there is a need for a benchmark in lowering Banks’ operating expenses, in order for them to become more efficient. Finally, credit expansion in Eastern Europe and Balkans countries needs to be under a cautious umbrella in order banks should take the momentum for reaching their more efficient operational levels.
- Subjects :
- Economics and Econometrics
DEA Analysis
050208 finance
Public Administration
Technical Efficiency
lcsh:Organizational behaviour, change and effectiveness. Corporate culture
Strategy and Management
05 social sciences
Accounting Characteristics
lcsh:HD58.7-58.95
Economy
Banks
Financial Crisis
0502 economics and business
lcsh:Finance
lcsh:HG1-9999
Business
050207 economics
Business and International Management
Empirical evidence
Finance
Subjects
Details
- Language :
- English
- ISSN :
- 23066784 and 22209352
- Volume :
- 7
- Issue :
- 3
- Database :
- OpenAIRE
- Journal :
- Journal of Governance and Regulation
- Accession number :
- edsair.doi.dedup.....b35acc5f73077b520968c2e042ede784