Translated title: The impact of the credit crunch on the cost and profit efficiency of the banks: an international comparison
Authors: Babin, Adrian ; Marková, Katarína (advisor) ; Pečená, Magda (referee)
Document type: Master’s theses
Year: 2011
Language: eng
Abstract: This thesis documents, using an unbalanced panel of Top 1000 World banks with observations for 2005 - 2009, three main aspects related to cost and profit efficiency in banking. First, it established that there is no correlation between a bank's rank in the Top and its rank given by the efficiency scores. However, the size of the banks plays a positive role on the cost efficiency of the institution, big banks having higher cost efficiencies than small banks. Conversely, the profit efficiency is equal across different sizes. Second, it verified that for 2005 - 2009 there is no evidence that banks from the developed countries are more efficient than banks from emerging economies. This finding is further supported by the third aspect, which shows that banks originating in the developed economies, with large exposures to more sophisticated banking products, have been hit the hardest by the financial crisis. However the banks managed to shrink their cost inefficiency while losing efficiency on the revenue side. The post crisis, 2009, proved to be a year in which banks across countries and regions converged in terms of efficiency and plateaued at about 10% and 25% for cost and profit inefficiency respectively.
Keywords: Cost Inefficiency; Crisis; Developed Economies; Emerging Economies; Profit Inefficiency; Stochastic Frontier Analysis; Top 1000 World Banks 2010; Cost Inefficiency; Crisis; Developed Economies; Emerging Economies; Profit Inefficiency; Stochastic Frontier Analysis; Top 1000 World Banks 2010

Institution: Charles University Faculties (theses) (web)
Document availability information: Available in the Charles University Digital Repository.
Original record: http://hdl.handle.net/20.500.11956/48588

Permalink: http://www.nusl.cz/ntk/nusl-312874


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Universities and colleges > Public universities > Charles University > Charles University Faculties (theses)
Academic theses (ETDs) > Master’s theses