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Bank regulatory standards and supervision: The impact on the of banks' efficiency
Kufnerová, Andrea ; Fišerová, Tereza (advisor) ; Havránková, Zuzana (referee)
This thesis examines the bank efficiency and the impact of the regulatory and supervisory instruments on the efficiency of banks actively performing on the financial markets in the countries of European Union. Our analysis concerns 8-year time period, covering also the period of global financial crisis with the aim to determine possible changes in the relationship regulation versus efficiency. We apply SFA Fourier-flexible model for estimation of profit and cost efficiency scores. Consequently we use GLS panel data estimation in order to test for the regulatory determinants of efficiency, we have specified 6 various models with the focus on different regulatory instruments. Results firstly suggest that high cost efficiency does not necessarily imply high bank profit efficiency. Secondly, we uncovered the negative relation between market concentration, the level of development of financial market and the cost efficiency of foreign banks. Thirdly, we also found evidence supporting the assumption of positive impact of private monitoring and the independence of supervisory authority implying the increasing of transparency in the market. Additionally, we uncovered support for negative effect of activity and diversification restrictions. However, the results concerning the financial crisis period are...
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Financial Performance of European Cooperative Banks
Kuc, Matěj ; Teplý, Petr (advisor) ; Tůma, Zdeněk (referee) ; Tripe, David (referee) ; Witzany, Jiří (referee)
This dissertation consists of four essays dealing with the financial performance of European cooperative banks. We focus on a comparison between the performance of cooperative banks and that of shareholder-owned commercial banks. Furthermore, we compare different cooperative banking models in Europe, paying special attention to the Czech credit union sector. In the individual essays, we examine different performance measures depicting profitability, stability and cost efficiency. The topic of the financial performance of cooperative banks is highly relevant, as cooperative banks are structurally different from the standard commercial banking model and they have a significant market share in several European countries, while most of the empirical literature focused on banking financial performance is devoted solely to commercial banks. The first essay of this dissertation thesis empirically assesses the financial performance of Czech credit unions compared to that of cooperative banks from 15 European countries in terms of their profitability and stability. Employing dynamic panel data methods, we reveal that the performance of Czech credit unions in terms of both profitability and stability is worse than that of their European peers. In the second essay, we compare the financial performance of cooperative...
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Bank Efficiency, Risk, and Capital in the Visegrad Group Countries
Fraňo, Filip ; Teplý, Petr (advisor) ; Lešanovská, Jitka (referee)
The aim of the thesis is to estimate the cost efficiency of the banks from the Czech Republic, Hungary, Poland, and Slovakia during 2008-2013 using stochastic frontier analysis. In addition to this, mutual relationships between the changes in banks' cost efficiency, risk- taking, and capital position are examined. First, the literature that is concerned with these relationships is reviewed and the stochastic frontier approach towards the efficiency estimation is outlined. In the empirical analysis, the cost efficiency of the banks from the aforementioned countries is estimated. The results suggest that the Czech and the Polish banks from the sample have the highest average cost efficiency while the Hungarian banks rank the lowest. The estimated efficiency is decreasing during the sample period. No conclusive results are found to support the hypothesis that the larger banks exhibit higher cost efficiency. Subsequently, the system of simultaneous equations is applied to test the mutual relationships between the changes in the banks' cost efficiency, risk-taking, and capital position. The results suggest a negative relationship between the changes in risk-taking and cost efficiency and between the changes in capital position and risk-taking of the banks. Moreover, the results do not indicate simultaneous...
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Privatization of banks in Slovakia and its impact on bank market
Soták, Branislav ; Půlpán, Karel (advisor) ; Slavíček, Ján (referee)
This diploma thesis deals with the transition and privatization of banks in Slovak Republic. In the beginning, it describes the theoretical background of financial transition. It then copes with the emergence of two-tiered banking and privatization and its implications for the uprise of a Slovak specific corporate governance model, in which banks played a crucial role. The third part investigates problems of the development of the banking sector until late 90s, mostly the vast non-performing loan portfolio. These problems eventually led to a banking crises, that was necessary to be solved via costly restructuring and privatization of banks with the entry of strategic foreign investors, the fourth part describes the process. The last part is dedicated to an empirical analysis of the impact of various ownership forms on the cost efficiency of banks in the sample of Czech and Slovak banks in the period 1996-2005. To estimate the efficiency we use the stochastic frontier approach with the translog specification of the cost function. The results support the hypothesis that privatized banks are more cost efficient than stateowned banks.
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Bank regulatory standards and supervision: The impact on the of banks' efficiency
Kufnerová, Andrea ; Fišerová, Tereza (advisor) ; Havránková, Zuzana (referee)
This thesis examines the bank efficiency and the impact of the regulatory and supervisory instruments on the efficiency of banks actively performing on the financial markets in the countries of European Union. Our analysis concerns 8-year time period, covering also the period of global financial crisis with the aim to determine possible changes in the relationship regulation versus efficiency. We apply SFA Fourier-flexible model for estimation of profit and cost efficiency scores. Consequently we use GLS panel data estimation in order to test for the regulatory determinants of efficiency, we have specified 6 various models with the focus on different regulatory instruments. Results firstly suggest that high cost efficiency does not necessarily imply high bank profit efficiency. Secondly, we uncovered the negative relation between market concentration, the level of development of financial market and the cost efficiency of foreign banks. Thirdly, we also found evidence supporting the assumption of positive impact of private monitoring and the independence of supervisory authority implying the increasing of transparency in the market. Additionally, we uncovered support for negative effect of activity and diversification restrictions. However, the results concerning the financial crisis period are...
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Bank Efficiency, Risk, and Capital in the Visegrad Group Countries
Fraňo, Filip ; Teplý, Petr (advisor) ; Lešanovská, Jitka (referee)
The aim of the thesis is to estimate the cost efficiency of the banks from the Czech Republic, Hungary, Poland, and Slovakia during 2008-2013 using stochastic frontier analysis. In addition to this, mutual relationships between the changes in banks' cost efficiency, risk- taking, and capital position are examined. First, the literature that is concerned with these relationships is reviewed and the stochastic frontier approach towards the efficiency estimation is outlined. In the empirical analysis, the cost efficiency of the banks from the aforementioned countries is estimated. The results suggest that the Czech and the Polish banks from the sample have the highest average cost efficiency while the Hungarian banks rank the lowest. The estimated efficiency is decreasing during the sample period. No conclusive results are found to support the hypothesis that the larger banks exhibit higher cost efficiency. Subsequently, the system of simultaneous equations is applied to test the mutual relationships between the changes in the banks' cost efficiency, risk-taking, and capital position. The results suggest a negative relationship between the changes in risk-taking and cost efficiency and between the changes in capital position and risk-taking of the banks. Moreover, the results do not indicate simultaneous...
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Competition, efficiency and soundness in banking
Jankovská, Alžběta ; Geršl, Adam (advisor) ; Havránková, Zuzana (referee)
There is an ongoing debate whether the impact of competition on bank soundness is positive or negative. Traditionally, it was assumed that there is a trade-off between competition and bank soundness. On the other hand, some recent studies suggest that competition has a positive effect on bank soundness. In this thesis, we will focus on the concept of efficiency as a possible link between competition and bank soundness. Firstly, we will summarize different approaches to measure competition, efficiency and soundness in banking sector. Subsequently, we will focus on hypotheses formulated to describe the link between competition in financial sector and bank soundness, between efficiency and bank soundness and between bank competition and efficiency. The empirical part, we will examine whether there is a link between competition and soundness via efficiency channel. Our analysis is based on dataset contains commercial banks from Visegrad group during period 2008 - 2012. We will exploit the Boone indicator as a measure of competition, the SFA approach to obtain efficiency score and soundness will be derived from z-score. The empirical evidence confirmed the positive link between competition and bank soundness via efficiency channel.
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Impact of the Great Recession on the European banking sector: The stochastic frontier approach
Obořil, Josef ; Havránková, Zuzana (advisor) ; Havránek, Tomáš (referee)
This thesis investigates the impact of the Great Recession on cost efficiency of panel data of 4291 banks of the eurozone in the years 2003 - 2010, using the stochastic frontier approach. The main finding is that recession in Europe has a positive impact on cost efficiency; however, there was a decline already connected with the outbreak of the Great Recession in the US. Secondly, significant determinants of cost efficiency in the eurozone are total assets, total business, interest margin, and equity, however its significance changes over time. Moreover, there were significant differences found in cost efficiency among eurozone countries and among bank types and types of ownership. Thirdly, through comparison to the Czech Republic we found that monetary policy stabilizes the impact of the crisis on cost efficiency. Finally, features of most cost-efficient and least cost-efficient banks were documented. Result of the investigation is that total business is the major difference between them. 1
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Hospital strategy performance
Márová, Adéla ; Dvořáček, Jiří (advisor) ; Bláha, Martin (referee)
This master's thesis called Hospital strategy performance deals with the strategic analysis of České Budějovice Hospital in relation to cost efficiency in this company. Information were provided during the interview with the company CEO, MUDr. Břetislav Shon. Primary input for financial analysis purpose were taken from the annual reports of 2011-2015. The introduction defines strategy and strategic analysis and the master's thesis' aims are specified. The theoretical part is based on theoretical definition and methodology of strategic analysis, the analytical process is introduced, as well as results evaluation based on specialized publication. The practical part consists of the description of the current situation in Czech health care, company introduction and the strategic analysis of the company. The conclusion includes the strategic analysis evaluation and recommendation for next steps.
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Bank Efficiency and Interest Rate Pass-Through: Evidence from Czech Loan Products
Havránek, Tomáš ; Iršová, Zuzana ; Lešanovská, Jitka
An important component of monetary policy transmission is the pass-through from financial market interest rates, directly influenced or targeted by central banks, to the rates that banks charge firms and households. Yet the available evidence on the strength and speed of the pass-through is mixed and varies across countries, time periods, and even individual banks. We examine the pass-through mechanism using a unique data set of Czech loan and deposit products and focus on bank-level determinants of pricing policies, especially cost efficiency, which we estimate employing both stochastic frontier and data envelopment analysis. Our main results are threefold: First, the long-term pass-through was close to complete for most products before the financial crisis, but has weakened considerably afterward. Second, banks that provide high rates for deposits usually charge high loan markups. Third, cost-efficient banks tend to delay responses to changes in the market rate, smoothing loan rates for their clients.
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