The Baltic banking system in the enlarged European Union: the effect of the financial crisis on efficiency

Jose Luis Gallizo (), Jordi Moreno () and Manuel Salvador ()
Additional contact information
Jose Luis Gallizo: AEGERN Department, University of Lleida
Jordi Moreno: AEGERN Department, University of Lleida
Manuel Salvador: Department of Estructura e Historia Economica y Economia Publica, University of Zaragoza

Baltic Journal of Economics, 2018, vol. 18, issue 1, 1-24

Abstract: The main objective of this study is to analyse the evolution of banking efficiency in the Baltic countries after their accession to the EU and during the financial crisis, and to check whether there are significant differences between these countries as a consequence of their particular characteristics. To that end, we have estimated the evolution of cost and profit efficiency in the Baltic countries in the context of the enlarged EU during the period 2000Ð2013 using Bayesian stochastic frontier models. Our results show the greater robustness of Estonian banking in terms of profits during the financial crisis in comparison to their neighbours. Additionally, Baltic banking has recovered its profit efficiencies very quickly after the financial crisis. However, cost efficiency is still at low levels in line with the other European countries.

Keywords: Banking efficiency; economic crisis; stochastic frontier models; Bayesian inference (search for similar items in EconPapers)
JEL-codes: G14 G21 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.tandfonline.com/doi/full/10.1080/1406099X.2017.1376430 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bic:journl:v:18:y:2018:i:1:p:1-24

Access Statistics for this article

More articles in Baltic Journal of Economics from Baltic International Centre for Economic Policy Studies Contact information at EDIRC.
Bibliographic data for series maintained by Anna Zasova ().