Analysis of the efficiency of banks in Serbia and Montenegro using the DEA method
The banking sector of a country plays a crucial role in the overall economy of a nation. The efficiency of banks is a critical factor in assessing their financial performance and competitiveness. The aim of this paper is to measure the relative efficiency of the commercial banks in Serbia and Monten...
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| Format: | Article |
| Language: | English |
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Faculty of Business and Entrepreneurship, Belgrade
2023-01-01
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| Series: | International Review |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/2217-9739/2023/2217-97392303184S.pdf |
| _version_ | 1797271762764824576 |
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| author | Simonović Dragoljub Milojević Stefan Milašinović Marko Dimitrijević Mlađan |
| author_facet | Simonović Dragoljub Milojević Stefan Milašinović Marko Dimitrijević Mlađan |
| author_sort | Simonović Dragoljub |
| collection | DOAJ |
| description | The banking sector of a country plays a crucial role in the overall economy of a nation. The efficiency of banks is a critical factor in assessing their financial performance and competitiveness. The aim of this paper is to measure the relative efficiency of the commercial banks in Serbia and Montenegro by using the non-parametric methodology Data Envelopment Analysis (DEA). The efficiency of banks will be measured using DEA for two models with different input and output variables. The sample consists of banks from Serbia (21) and banks from Montenegro (11) for the period 2017-2022. According to the obtained results, there are four banks that are relatively efficient every year, two from Serbia and two from Montenegro (AIK banka and 3M banka according to the first model and Crnogorska komercijalna banka and Hipotekarna banka according to the second model). The findings from the paper are valuable for further use by regulators, policy makers and bank management who are expected to identify a sustainable business strategy in line with the company's capabilities. |
| first_indexed | 2024-03-07T14:13:49Z |
| format | Article |
| id | doaj.art-97473d61ca584e679ac70f7ca4bb7eaa |
| institution | Directory Open Access Journal |
| issn | 2217-9739 2560-3353 |
| language | English |
| last_indexed | 2024-03-07T14:13:49Z |
| publishDate | 2023-01-01 |
| publisher | Faculty of Business and Entrepreneurship, Belgrade |
| record_format | Article |
| series | International Review |
| spelling | doaj.art-97473d61ca584e679ac70f7ca4bb7eaa2024-03-06T14:14:10ZengFaculty of Business and Entrepreneurship, BelgradeInternational Review2217-97392560-33532023-01-0120233-418419410.5937/intrev2304181S2217-97392303184SAnalysis of the efficiency of banks in Serbia and Montenegro using the DEA methodSimonović Dragoljub0Milojević Stefan1https://orcid.org/0000-0001-6240-6776Milašinović Marko2https://orcid.org/0000-0002-9346-9283Dimitrijević Mlađan3https://orcid.org/0000-0002-2858-8921University of Belgrade, Faculty of Organizational Science, Belgrade, SerbiaEDUCONS University, Faculty of Business Economics, Sremska Kamenica, SerbiaUniversity of Kragujevac, Faculty of Hotel management and Tourism, Vrnjačka banja, SerbiaStudent Center Kragujevac, Kragujevac, SerbiaThe banking sector of a country plays a crucial role in the overall economy of a nation. The efficiency of banks is a critical factor in assessing their financial performance and competitiveness. The aim of this paper is to measure the relative efficiency of the commercial banks in Serbia and Montenegro by using the non-parametric methodology Data Envelopment Analysis (DEA). The efficiency of banks will be measured using DEA for two models with different input and output variables. The sample consists of banks from Serbia (21) and banks from Montenegro (11) for the period 2017-2022. According to the obtained results, there are four banks that are relatively efficient every year, two from Serbia and two from Montenegro (AIK banka and 3M banka according to the first model and Crnogorska komercijalna banka and Hipotekarna banka according to the second model). The findings from the paper are valuable for further use by regulators, policy makers and bank management who are expected to identify a sustainable business strategy in line with the company's capabilities.https://scindeks-clanci.ceon.rs/data/pdf/2217-9739/2023/2217-97392303184S.pdfdea analysisbusiness banksefficiencyfinancial performancebusiness sustainability |
| spellingShingle | Simonović Dragoljub Milojević Stefan Milašinović Marko Dimitrijević Mlađan Analysis of the efficiency of banks in Serbia and Montenegro using the DEA method International Review dea analysis business banks efficiency financial performance business sustainability |
| title | Analysis of the efficiency of banks in Serbia and Montenegro using the DEA method |
| title_full | Analysis of the efficiency of banks in Serbia and Montenegro using the DEA method |
| title_fullStr | Analysis of the efficiency of banks in Serbia and Montenegro using the DEA method |
| title_full_unstemmed | Analysis of the efficiency of banks in Serbia and Montenegro using the DEA method |
| title_short | Analysis of the efficiency of banks in Serbia and Montenegro using the DEA method |
| title_sort | analysis of the efficiency of banks in serbia and montenegro using the dea method |
| topic | dea analysis business banks efficiency financial performance business sustainability |
| url | https://scindeks-clanci.ceon.rs/data/pdf/2217-9739/2023/2217-97392303184S.pdf |
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