EFFICIENCY OF BANKS IN NORTHERN CROATIA

Banks are important financial intermediaries of any national economy and especially vital in bank-based systems as the one in the Republic of Croatia, where banks hold a crucial role in the financial system, with a share of almost 70% of the total assets of the financial sector in 2018. This paper aims to evaluate and discuss the relative efficiencies of three small-sized commercial banks operating and headquartered in Northern Croatia by implementing the output- oriented DEA (Data Envelopment Analysis) methodology. The model uses two input and two output variables, following Banker et al. (2010), Cvetkoska et al. (2021a) and Cvetkoska et al. (2021b). Even though the sample consists of 20 banks operating in Croatia at the end of 2019, only three of them are headquartered in Northern Croatia (Banka Kovanica d.d., Varaždin; J&T banka d.d. Varaždin and Podravska banka d.d. Koprivnica). They are the main focus of this research. The time frame is from 2015 to 2019. The findings show that J&T Banka d.d. Varaždin noted 86.8% efficiency, Podravska Banka d.d. Koprivnica 78.7% and the most efficient of these small-sized banks is Banka Kovanica d.d. Varaždin with an efficiency score of 100% in the whole observed period. The total average efficiency score for the whole Croatian sector is 90.9%. The findings of this study will provide valuable insights and feedback for the analyzed bank’s management as well as for the bank’s stakeholders, which would ultimately lead to an improvement of efficiency of the analysed banks, and eventually, the whole banking system. Notwithstanding, the findings could bring light to the fact that small-sized banks operating in rural counties could be neglected by researchers in Croatia, but also globally. The results are somewhat in line with many previous studies that found large banks to be more efficient than small banks.

Izvorni znanstveni radMirko SMOLJIĆ
Preuzmite temuStranice 128-140.pdf

40 Prosinac 2021.
39 Lipanj 2021.
38 Prosinac 2020.
37 Svibanj 2020.
36 Prosinac 2019.
35 Lipanj 2019.
34 Prosinac 2018.
33 Lipanj 2018.
32 Prosinac 2017.
31 Lipanj 2017.
30 Prosinac 2016.
29 Lipanj 2016.
28 Prosinac 2015.
27 Lipanj 2015.
26 Prosinac 2014.
25 Lipanj 2014.
24 Studeni 2013.
23 Lipanj 2013.
22 Siječanj 2013.
21 Srpanj 2012.
20 Studeni 2011.
19 Lipanj 2011.
18 Studeni 2010.
17 Lipanj 2010.
16 Prosinac 2009.
15 Lipanj 2009.
14 Prosinac 2008.
13 Lipanj 2008.
12 Prosinac 2007.
11 Lipanj 2007.
10 Studeni 2006.
9 Svibanj 2006.
8 Studeni 2005.
7 Lipanj 2005.
6 Prosinac 2004.
5 Lipanj 2004.
4 Studeni 2003.
3 Lipanj 2003.
1 Veljača 2002.