Katerina Fotova Čiković – University North, Trg dr. Žarka Dolinara 1, 48000 Koprivnica, Croatia

 

 DOI: https://doi.org/10.31410/EMAN.S.P.2022.37

Full paper

Download file

6th International Scientific Conference – EMAN 2022 – Economics and Management: How to Cope With Disrupted Times, Ljubljana, Slovenia, March 24, 2022, SELECTED PAPERS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-58-5, ISSN 2683-4510

 

Abstract:

This paper aims to survey, identify and present the relevant stud­ies and their findings regarding the efficiency of banking systems in Europe with the application of the Data Envelopment Analysis (DEA) window tech­nique approach. Notwithstanding, another goal is to provide a background on the DEA methodology and present the window technique approach and highlight its strengths and limitations.

This article implements an extensive literature review of studies that employ the WDEA (window DEA) methodology in the efficiency evaluation of Eu­ropean banking. The conducted literature review has surveyed the Scopus, Web of Science (SSCI and SCI papers) and CROSBI (Croatian Scientific Bib­liography) databases with „Data Envelopment Analysis“, „Window“ and „Bank“ as keywords for the search, which resulted in a total of 89 hits (41 in Scopus, 47 on WoS and 1 on CROSBI). Thereafter, a manual survey of these studies has been conducted, which eventually resulted in 12 papers regard­ing the efficiency of European banking. This study identifies all the relevant previous work regarding the efficiency of European banking with the appli­cation of WDEA (DEA-window technique) as well as a presentation of their used models, the selected variables and their findings.

This literature review indicates that the surveyed studies have been pub­lished in the period between 2007 and 2020 and have included the time frame from 1995 to 2017. The longest study includes 13 years, whereas the shortest includes 3 analysed years.

The findings primarily show the applicability of WDEA in the literature

Keywords:

Data Envelopment Analysis (DEA); Banking; Europe; Efficiency measurement; Non-parametric approach; Window analysis (WA)

REFERENCES

Andries, A. M., Ursu, S. G. (2016). Financial crisis and bank efficiency: An empirical study of Eu­ropean banks. Economic Research – Ekonomska istraživanja, 29(1), 485-497. https://doi.org/1 0.1080/1331677X.2016.1175725

Charnes, A, Clark, C.T., Cooper, W., Golany, B. (1985). A Developmental Study of Data Envelop­ment Analysis in Measuring the Efficiency of Maintenance Units in the U.S. Air Forces. Ann Oper Res 2, 95–112.

Cooper, W., Seiford, L. & Tone, K. (2007). Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software, 2nd ed.; Springer Science+Busi­ness Media, LLC: New York, NY, USA.

Cvetkoska, V. & Fotova Čiković, K. (2020). Assessing the relative efficiency of commercial banks in the Republic of North Macedonia: DEA window analysis. Croatian operational research re­view, 11(2), 217-227. https://doi.org/10.17535/crorr.2020.0017

Cvetkoska, V. & Savić, G. (2017). Efficiency of bank branches: empirical evidence from a two-phase research approach. Economic Research-Ekonomska Istraživanja, 30(1), 318-333, https://doi.org /10.1080/1331677X.2017.1305775

Cvetkoska, V., Fotova Čiković, K., Tasheva, M. (2021). Efficiency of Commercial Banking in Devel­oping Countries. Mathematics, 9, 1597. https://doi.org/10.3390/math9141597

De Borger, B., Kerstens, K., Costas, A. (2002). Public transit performance: what does one learn from frontier studies? Transport Reviews 22(1), 1–38. https://doi.org/10.1080/01441640010020313

Degl’Innocenti, M., Kourtzidis, S., Sevic, Z., & Tzeremes, N. (2017). Investigating bank efficiency in transition economies: A window-based weight assurance region approach. Economic Mod­elling, 67, 23-33. https://doi.org/10.1016/j.econmod.2016.08.015

Drab, R. & Kočišova, K. (2018). Efficiency of the banks: the case of the Visegrad countries. Eco­nomic Annals-ХХI. 174. 34-42. doi: https://doi.org/10.21003/ea.V174-06

Flokou, A., Aletras, V., Niakas, D. (2017). A window-DEA based efficiency evaluation of the pub­lic hospital sector in Greece during the 5-year economic crisis. PLoS ONE 12(5), e0177946. https://doi.org/10.1371/journal.pone.0177946

Fotova Čiković, K. & Cvetkoska, V. (2017). Efficiency of the Macedonian banking sector: A non-par­ametric approach. CEA Journal of Economics, 12 (2), 17-26.

Fotova Čiković, K. & Lozić, J. (2022). Application of Data Envelopment Analysis (DEA) in In­formation and Communication Technologies. Tehnički glasnik, 16 (1), 129-134. https://doi. org/10.31803/tg-20210906103816

Fried, H.O., Lovell, C.A.K., Schmidt, S.S. (2008). The Measurement of Productive Efficiency and Productivity Growth. Oxford University Press.

Gaganis, C. & Pasiouras, F. (2009). Efficiency in the Greek Banking Industry: A Comparison of For­eign and Domestic Banks. International Journal of the Economics of Business, 16:2, 221-237, https://doi.org/10.1080/13571510902917533

Gattoufi, С., Sakr, С. Omran, М., (2008). Tracking the Impact of Mergers and Acquisitions on the Efficiency of Commercial Banks in MENA Countries Using a Malmquist Index Based Ap­proach. Economic Research Forum, Working Paper Series, Working paper no.465

Hartman, T. E., Storbeck, J. E. (1996). Input congestion in loan operations. International Journal of Production Economics, 46–47, 413–421. https://doi.org/10.1016/S0925-5273(96)00076-X

Jia, T. & Yuan, H. (2017). The application of DEA (Data Envelopment Analysis) window analysis in the assessment of influence on operational efficiencies after the establishment of branched hos­pitals. BMC Health Serv Res 17, 265. https://doi.org/10.1186/s12913-017-2203-

Kaur, P., Kaur, G., (2010). Impact of Mergers on the Cost Efficiency of Indian Commercial Banks, Eurasian Journal of Business and Economics, 3(5), 27-50.

Kisielewska, M., Guzovska, M., Nellis, J. G., Zarzecki, D. (2007). Polish banking industry efficien­cy: a DEA window analysis approach. Research Paper 7/07, Cranfield University School of Management.

Micajkova, V., Poposka, K. (2013). Efficiency of Macedonian Banks: A DEA Approach. Research Journal of Finance and Accounting, 4(12), 141–149. Retrieved from https://www.iiste.org/Jour­nals/ index.php/RJFA/article/view/7769/7848

Paleckova, I. (2017). Application of window Malmquist index for examination of efficiency change of Czech commercial banks. DANUBE: Law, Economics and Social Issues Review, 8(3), pp. 173-190, https://doi.org/10.1515/danb-2017-0012

Paradi, J. C., Vela, S. & Yang, Z. (2004). Assessing bank and bank branch performance. In W. W. Cooper, L. M. Seiford, and J. Zhu (Eds.) Handbook of Data Envelopment Analysis (pp. 349– 400). Boston, MA: Kluwer Academic.

Rakocevic, S., Dragasevic, Z. (2009). Analysis of the Efficiency of Banks in Montenegro Using the AHP. Proceedings of Tenth International Symposium on Analytic Hierarchy Process (ISAHP 2009), University of Pittsburgh, USA.

Repkova, I. (2014). Efficiency of the Slovak Commercial Banks Applying the DEA Window Anal­ysis. International Journal of Social, Management, Economics and Business Engineering, 8, pp. 1262-1267.

Savić, G., Radosavljević, M., Ilievski, D. (2012). DEA window analysis approach for measuring the efficiency of Serbian banks based on panel data. Management – Journal for theory and prac­tice of management, 17 (65), pp. 5-14. DOI: 10.7595/management.fon.2012.0028

Simar, L. & Wilson, P. (2000). A general methodology for bootstrapping in non-parametric frontier models. Journal of Applied Statistics 27(6), 779-802. https://doi.org/10.1080/02664760050081951

Škuflić, L., Rabar, D., Škrinjarić, B. (2013). Assessment of the efficiency of Croatia compared to oth­er European countries using data envelopment analysis with application of window analysis. International journal of sustainable economy, 5 (1), pp.104-123. doi:10.1504/IJSE.2013.050601.

Soysal-Kurt, H. (2017). Measuring Tourism Efficiency of European Countries by Using Data Envel­opment Analysis. European Scientific Journal 13 (10), 31-49. doi: 10.19044/esj.2017.v13n10p31

Stolp, C. (1990). Strengths and weaknesses of data envelopment analysis: An urban and region­al perspective. Computers, Environment and Urban Systems, 14(2), 103-116. https://doi. org/10.1016/0198-9715(90)90016-M

Sufian, F., Zulkhibri, M.A.M., Haron, R. (2007). Efficiency and Bank Merger in Singapore: A Joint Estimation of Non-Parametric, Parametric and Financial Ratios Analysis, MPRA Paper No. 12129

Tsaples, G., Papathanasiou, J. (2020). Multi-level DEA for the construction of multi-dimensional in­dices. MethodsX, 7, 101169. https://doi.org/10.1016/j.mex.2020.101169

Tuškan, B. & Stojanović, A. (2016). Measurement of cost efficiency in the European banking industry. Croatian Operational Research Review, 7 (1), 47-66. https://doi.org/10.17535/crorr.2016.0004

Vincova, K. (2005). Using DEA Models to Measure Efficiency. BIATEC, Volume XIII, 8/2005, Na­tional Bank of Slovakia.

Wang, S. (2003). Adaptive non-parametric efficiency frontier analysis: a neural-network-based model. Computers & Operations Research, 30(2), 279-295, https://doi.org/10.1016/ S0305-0548(01)00095-8.

Zimkova, E. (2014). Window analysis of technical efficiency: Case of the Slovak banking system. In: 17th Applications in Mathematics and Statistics in Economics International Scientific Confer­ence Proceedings, 27-31 August 2014, Poland, 294-300

 

Share this

Association of Economists and Managers of the Balkans – UdEkoM Balkan
179 Ustanicka St, 11000 Belgrade, Serbia

https://www.udekom.org.rs/home

Udekom Balkans is a dynamic non-governmental and non-profit organization, established in 2014 with a mission to foster the growth of scientific knowledge within the Balkan region and beyond. Our primary objectives include advancing the fields of management and economics, as well as providing educational resources to our members and the wider public.

Who We Are: Our members include esteemed university professors from various scientific disciplines, postgraduate students, and experts from ministries, public administrations, private and public enterprises, multinational corporations, associations, and similar organizations.

Building Bridges Together: Over the course of nine years since our establishment, the Association of Economists and Managers of the Balkans has established impactful partnerships with more than 1,000 diverse institutions across the Balkan region and worldwide.

EMAN conference publications are licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.