Efficiency of commercial banks in Bulgaria in the wake of EU accession

Kiril Tochkov and Nikolay Nenovsky ()

ICER Working Papers from ICER - International Centre for Economic Research

Abstract: The paper examines the efficiency of Bulgarian banks and its determinants over the period 1999- 2007. The levels of technical, allocative, and cost efficiency are first estimated using a nonparametric methodology and then regressed upon a number of bank-specific, institutional, and EU-related factors. The findings indicate that foreign banks were more efficient than domestic private banks, although the gap between them narrowed over time. State-owned banks ranked last on average but their privatization resulted in efficiency gains. Capitalization, liquid ity, and enterprise restructuring enhanced bank efficiency, while banking reforms had an adverse effect. The Treaty of Accession and EU membership were associated with significant efficiency improvements.

Keywords: Transition economies; Banking sector; Efficiency; EU accession (search for similar items in EconPapers)
JEL-codes: C14 G21 P20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-com, nep-eff and nep-tra
Date: 2009-10
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Persistent link: http://EconPapers.repec.org/RePEc:icr:wpicer:21-2009

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