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Market power and efficiency as the source of performance in banking: a case study of the Slovak banking sector

  1. TitleMarket power and efficiency as the source of performance in banking: a case study of the Slovak banking sector
    Author infoMartin Boďa
    Author Boďa Martin 1984- (100%) UMBEF05 - Katedra kvantitatívnych metód a informačných systémov
    Source document International Review of Applied Economics. Vol. 32, no. 5 (2018), pp. 589-619. - : Abington : Taylor & Francis Group, 2018
    Keywords banking sectors   SBM model   performance  
    LanguageEnglish
    CountryGreat Britian
    systematics 336
    Annotation© 2017 Informa UK Limited, trading as Taylor & Francis Group In an attempt to explain the sources of performance in the Slovak banking sector, the paper inquiries whether performance of Slovak banking institutions can be traced to market structure (as suggested by two market-power hypotheses) or should rather be attributed to efficiency (as postulated by two efficient-structure hypotheses). The empirical investigation is conducted with respect to two measures of banking performance and for a period of 11 years from 2005 to 2015 with some novel features in comparison to the state of the art in the field. First, the model of banking production accounts for both the intermediation and production aspects of banking operations and adapts the network slacks-based measure model in order to obtain trustworthy estimates of X-efficiencies and scale efficiencies. Second, the used simultaneous equations model involving all the four hypotheses of interest accommodates both performance measures at a time and avoids thus separate estimation. Third, the method of hypothesis verification hinges on testing composite hypotheses and refrains from step-wise estimation of nested models and significance testing of isolated parameters. A variant of the efficient-structure hypothesis in which both X-efficiency and scale efficiency exert its influence upon performance is established as descriptive for major Slovak commercial banking institutions.
    URLLink na plný text
    Public work category ADM
    No. of Archival Copy40157
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    Catal.org.BB301 - Univerzitná knižnica Univerzity Mateja Bela v Banskej Bystrici
    Databasexpca - PUBLIKAČNÁ ČINNOSŤ
    ReferencesPERIODIKÁ-Súborný záznam periodika
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Number of the records: 1  

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