Acta academica karviniensia 2015, 15(1):130-140 | DOI: 10.25142/aak.2015.011

ESTIMATION OF THE EFFICIENCY OF SLOVAK COMMERCIAL BANKS BY THE DATA ENVELOPMENT ANALYSIS

Iveta Palečková
Slezská univerzita, Obchodně podnikatelská fakulta, Univerzitní nám. 1934/3,733 40 Karviná, Email:paleckova@opf.slu.cz

This paper estimates the efficiency of the Slovak commercial banks during the period 2004-2013. We applied the non-parametric Data Envelopment Analysis on the data of the Slovak banks. We simultaneously use two alternative specifications of DEA approach, specifically CCR model and BCC model that differ in returns to scale assumption. The results of DEA models show that the average efficiency computed under the assumption of constant returns to scale ranges from 75 to 92% and the average efficiency estimated under the assumption of variable returns to scale ranges from 91 to 98%. The average efficiency was increasing during the period 2004-2007, but the average efficiency decreased in the period 2008-2012 as a result of the financial crisis. We can see the decrease of total loans and net interest income in the balance sheet of commercial banks during the period 2008-2012. The most effective banks were Vseobecna uverova banka, OTP banka, Privat banka and Slovenska sporitelna.

Keywords: commercial bank, Data Envelopment Analysis, efficiency, Slovak banking sector
JEL classification: C51, G21

Received: September 2, 2014; Accepted: May 27, 2015; Published: March 30, 2015  Show citation

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Palečková I. ESTIMATION OF THE EFFICIENCY OF SLOVAK COMMERCIAL BANKS BY THE DATA ENVELOPMENT ANALYSIS. Acta academica karviniensia. 2015;15(1):130-140. doi: 10.25142/aak.2015.011.
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