Cost Efficiency of European Cooperative Banks
| Author(s): | Mgr. Matěj Kuc , PhDr. Karolína Vozková , |
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| Type: | Article in collection |
| Year: | 2017 |
| Number: | 0 |
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| Published in: | Proceedings ICBEFMS 2017 : 19th International Conference on Business, Economics, Finance and Management Sciences, Cuba 2017 |
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| Keywords: | cooperative banks, cost efficiency, efficient frontier analysis, stochastic frontier analysis, net fee and commission income |
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| Grants: | GACR 15-00036S Credit Risk Modeling for Financial and Commodity Assets Portfolios GAUK 105815 (2015 - 2017) Banking fee and commission income – its determinants and impact on bank’s profitability and risk GAUK No. 488317 - Performance of cooperative banking in the Czech Republic and other EU member states |
| Abstract: | This paper analyzes recent trends in cost efficiency of European cooperative banks using efficient frontier analysis. Our methodology is based on stochastic frontier analysis which is run on a set of 649 European cooperative banks using data between 2006 and 2015. Our results show that average inefficiency of European cooperative banks is increasing since 2008, smaller cooperative banks are significantly more efficient than the bigger ones over the whole time period and that share of net fee and commission income to total income surprisingly seem to have no impact on bank cost efficiency. |
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