Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor Productivity

In the literature that deals with the empirical measurement of relative technical efficiency and change in the productiveness of banks over time the Malmquist index of change of total factor productivity has become the most often-used analytical tool. It has been shown that the Malmquist index helps...

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Main Authors: Marko Primorac, Zvonimir Troskot
Format: Article
Language:English
Published: Institute of Public Finance 2005-12-01
Series:Financial Theory and Practice
Subjects:
Online Access:http://www.ijf.hr/eng/FTP/2005/4/primorac-troskot.pdf
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author Marko Primorac
Zvonimir Troskot
author_facet Marko Primorac
Zvonimir Troskot
author_sort Marko Primorac
collection DOAJ
description In the literature that deals with the empirical measurement of relative technical efficiency and change in the productiveness of banks over time the Malmquist index of change of total factor productivity has become the most often-used analytical tool. It has been shown that the Malmquist index helps both central and commercial bank analysis to monitor trends within the banking sector, and that it can be used as assistance in controlling the system and in strategic planning. This investigation is directed at the relative comparison of banks within the banking sector of Croatia in the period from 2000 to 2003, and is the first paper in which the Croatian banking sector has been analysed with the application of the Malmquist index of change in total factor productivity. The scientific contribution deriving from this is heightened by the interdisciplinarity that informs the paper. The primary objective of the investigation is the monitoring of relative trends of banks inside the very dynamic Croatian banking sector. Focus is placed on the need for the development of additional models to cover alternative and above all off-balance-sheet indicators.
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spelling doaj.art-8e259767cd894bdd9bdc549cbf0bd7592022-12-22T01:36:42ZengInstitute of Public FinanceFinancial Theory and Practice1846-887X1845-97572005-12-01294309325Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor ProductivityMarko PrimoracZvonimir TroskotIn the literature that deals with the empirical measurement of relative technical efficiency and change in the productiveness of banks over time the Malmquist index of change of total factor productivity has become the most often-used analytical tool. It has been shown that the Malmquist index helps both central and commercial bank analysis to monitor trends within the banking sector, and that it can be used as assistance in controlling the system and in strategic planning. This investigation is directed at the relative comparison of banks within the banking sector of Croatia in the period from 2000 to 2003, and is the first paper in which the Croatian banking sector has been analysed with the application of the Malmquist index of change in total factor productivity. The scientific contribution deriving from this is heightened by the interdisciplinarity that informs the paper. The primary objective of the investigation is the monitoring of relative trends of banks inside the very dynamic Croatian banking sector. Focus is placed on the need for the development of additional models to cover alternative and above all off-balance-sheet indicators.http://www.ijf.hr/eng/FTP/2005/4/primorac-troskot.pdfMalmquist TFP indexbanking performance
spellingShingle Marko Primorac
Zvonimir Troskot
Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor Productivity
Financial Theory and Practice
Malmquist TFP index
banking performance
title Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor Productivity
title_full Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor Productivity
title_fullStr Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor Productivity
title_full_unstemmed Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor Productivity
title_short Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor Productivity
title_sort measuring the efficacy and productiveness of croatian banks with the malmquist index of change in total factor productivity
topic Malmquist TFP index
banking performance
url http://www.ijf.hr/eng/FTP/2005/4/primorac-troskot.pdf
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