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Banking integration and efficiency convergence in Baltic countries in post-crisis period

Timisoara Journal of Economics and Business

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Title Banking integration and efficiency convergence in Baltic countries in post-crisis period
 
Creator POPOVICI, Mihaita Cosmin; Alexandru Ioan Cuza University of Iasi
 
Subject Efficiency; convergence; Baltic countries; integration
G01; G21
 
Description We investigate banking efficiency in Baltic countries over the period 2007 – 2011 during one of the biggest financial crisis. The global economic crisis began in December 2007 with the loss of investor confidence in the U.S. securitized mortgages that led to a liquidity crisis that prompted a substantial injection of capital into financial markets by the U.S. Federal Reserve, the Bank of England and European Central Bank. Baltic countries joined the EU in 2004, during the largest wave of accession. Estonia is a member of the eurozone since 2011, Latvia since 2014 and Lithuania adopted euro in 2015. We use Data Envelopment Analysis (DEA) – a nonparametric method in operations research and economics for the estimation of production frontiers. It is used to empirically measure productive efficiency of decision-making units (or DMUs) for a sample of banks in a highly concentrated banking system. The aim of the paper is to show the evolution of the banking efficiency in the Baltic countries over the period 2007 – 2011 by using Malmquist index. Our goal is to highlight the evolution of efficiency and we want to answer the research question “How banking efficiency evolved after the financial crisis?” Results show a slight improvement in banking efficiency over the period 2010 – 2011 due to improved management of the inputs, but further research is needed to gain a clearer picture of the phenomenon.
 
Publisher De Gruyter Open
 
Contributor European Social Fund, through Sectorial Operational Programme Human Resources Development 2007-2013, project number POSDRU/159/1.5/S/142115
 
Date 2015-05-29
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier http://tjeb.ro/index.php/tjeb/article/view/tjeb-vol7-2014-2-03
 
Source Timisoara Journal of Economics; Vol 7, No 2 (2014); 134–146
Timisoara Journal of Economics and Business; Vol 7, No 2 (2014); 134–146
 
Language eng
 
Relation http://tjeb.ro/index.php/tjeb/article/view/tjeb-vol7-2014-2-03/pdf
 
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