Role and comparative efficiency of European banks in Serbia’s financial sector

Ri, Anastasia and Suleymanova, Kamilya and Zdravković, Aleksandar (2008) Role and comparative efficiency of European banks in Serbia’s financial sector. In: Challenges of economic sciences in the 21st Century. Institute of Economic Sciences, Belgrade, pp. 656-663. ISBN 978-86-80315-79-9

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Abstract

This paper examines the cost efficiency of Serbian banks by the Stochastic Frontier Approach method for the 2003-2007 years and 33 banks sample. The results obtained are analysed in terms of the ownership structure of the studied banking system. A special attention is paid on the importance and cost-efficiency of foreign banks examined. It is found that state-owned banks are generally less performing in terms of cost-efficiency while European banks, playing the more and more important role and having an increasing share of the market, tend to be more efficient.

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