Measuring the efficiency of Polish banks using stochastic frontier approach

The aim of the paper was to estimate the level of efficiency of commercial banks operating in Poland. In order to do that, authors evaluated the level of development of the polish banking system and with the use of the parametric Stochastic Frontier Approach (SFA) the average inefficiency was estima...

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Main Authors: Jurand Skrzypek, Mariusz Radosław Trojak
Format: Article
Language:English
Published: Lodz University Press 2014-11-01
Series:Acta Universitatis Lodziensis. Folia Oeconomica
Subjects:
Online Access:https://czasopisma.uni.lodz.pl/foe/article/view/194
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author Jurand Skrzypek
Mariusz Radosław Trojak
author_facet Jurand Skrzypek
Mariusz Radosław Trojak
author_sort Jurand Skrzypek
collection DOAJ
description The aim of the paper was to estimate the level of efficiency of commercial banks operating in Poland. In order to do that, authors evaluated the level of development of the polish banking system and with the use of the parametric Stochastic Frontier Approach (SFA) the average inefficiency was estimated (for 34 banks between 2005 and 2011). The intermediation approach was applied to determine the inputs and outputs of banks. In the analyzed period the average efficiency level was increasing. Significant impact on technical efficiency had the financial crisis. Home field advantage hypothesis  and global advantage hypothesis were also verified. The crisis decreased efficiency. The work has the following structure: in the first part the characteristics of the polish banking system were presented. In the second part the authors showed the results of the most important works on efficiency for Polish banking sector, than the research method, data and results were presented. In the last part the most important conclusions were pointed out.
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spelling doaj.art-a840500c6cfc419c9df8bb8a814743612022-12-22T00:03:44ZengLodz University PressActa Universitatis Lodziensis. Folia Oeconomica0208-60182353-76632014-11-013303130Measuring the efficiency of Polish banks using stochastic frontier approachJurand Skrzypek0Mariusz Radosław Trojak1Uniwersytet Łódzki, Wydział Ekonomiczno-SocjologicznyUniwersytet Jagielloński, Instytut Ekonomii i ZarządzaniaThe aim of the paper was to estimate the level of efficiency of commercial banks operating in Poland. In order to do that, authors evaluated the level of development of the polish banking system and with the use of the parametric Stochastic Frontier Approach (SFA) the average inefficiency was estimated (for 34 banks between 2005 and 2011). The intermediation approach was applied to determine the inputs and outputs of banks. In the analyzed period the average efficiency level was increasing. Significant impact on technical efficiency had the financial crisis. Home field advantage hypothesis  and global advantage hypothesis were also verified. The crisis decreased efficiency. The work has the following structure: in the first part the characteristics of the polish banking system were presented. In the second part the authors showed the results of the most important works on efficiency for Polish banking sector, than the research method, data and results were presented. In the last part the most important conclusions were pointed out.https://czasopisma.uni.lodz.pl/foe/article/view/194Sektor bankowyefektywność bankówstochastyczna analiza graniczna SFA
spellingShingle Jurand Skrzypek
Mariusz Radosław Trojak
Measuring the efficiency of Polish banks using stochastic frontier approach
Acta Universitatis Lodziensis. Folia Oeconomica
Sektor bankowy
efektywność banków
stochastyczna analiza graniczna SFA
title Measuring the efficiency of Polish banks using stochastic frontier approach
title_full Measuring the efficiency of Polish banks using stochastic frontier approach
title_fullStr Measuring the efficiency of Polish banks using stochastic frontier approach
title_full_unstemmed Measuring the efficiency of Polish banks using stochastic frontier approach
title_short Measuring the efficiency of Polish banks using stochastic frontier approach
title_sort measuring the efficiency of polish banks using stochastic frontier approach
topic Sektor bankowy
efektywność banków
stochastyczna analiza graniczna SFA
url https://czasopisma.uni.lodz.pl/foe/article/view/194
work_keys_str_mv AT jurandskrzypek measuringtheefficiencyofpolishbanksusingstochasticfrontierapproach
AT mariuszradosławtrojak measuringtheefficiencyofpolishbanksusingstochasticfrontierapproach