engleski

Technical efficiency of banks in Croatia.

We contribute to the existing literature on bank efficiency by using Data Envelopment Analysis to calculate technical efficiency of Croatian banks by looking for technical improvements of their production from three different perspectives: input, output and hyperbolic. On a sample of banks operating in Croatia between 1994 and 2015 we show that larger, foreign owned institutions are on average more technically efficient. Given that the results of research on bank efficiency in Croatia were inconclusive so far we explain why the results should be carefully compared between parametric and non-parametric efficiency calculations. Finally, we suggest that further research on this topic is clearly needed because an efficient banking sector is the key to attaining the economic prosperity of every country and DEA based frontier analysis gives us better insight not only in the state of banking practices but also quantifies realistic production possibilities of banks.

banks ; Croatia ; data envelopment analysis ; technical efficiency.

Ovaj rad je djelomično podržan od strane Hrvatske zaklade za znanost kao dio znanstvenog projekta „Statistical Modelling for Response to Crisis and Economic Growth in Western Balkan Countries“ (STRENGTHS) ; Broj projekta: HRZZ-IP-2013-11-9402, Voditeljica: prof. dr. sc. Ksenija Dumičić.