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ALMAN BANKACILIK SEKTÖRÜNÜN MALİYET ETKİNLİĞİ

Year 2023, Volume: Aralık Issue: 3, 15 - 26, 31.12.2023

Çağlar Hamarat

Abstract

Almanya'da bankacılık sektörünün 2015-2018 yılları arasındaki maliyet etkinliğini değerlendirmek için bu çalışmada stokastik sınır analizi (SFA) ve iki alternatif X-verimlilik modeli kullanılmıştır. Araştırmanın sonuçları, Alman bankalarının ortalama maliyet etkinliğini göstermektedir. Bankaların etkinliği %57 ile %96 arasında değişmektedir ve her büyüklükteki banka için araştırma periyodu süresince değişmektedir. Ülkenin en önde gelen finansal kurumlarının çoğunun etkinlik dereceleri ulusal ortalamanın üzerinde olmasına rağmen, bir bankanın büyüklüğü ile etkinlik düzeyi arasında doğrudan bir ilişki yoktur. Buna ek olarak, Almanya'daki bankacılık sektörü genellikle ölçek ekonomilerinden yararlanmaktadır. Analiz sonuçları, genel etkinlik açısından, ülkenin batısında yer alan Alman bankalarının ülkenin doğusunda yer alan bankalardan daha üstün olduğunu göstermektedir.

Keywords

Banka verimliliği ölçek ekonomileri stokastik sınır analizi

Supporting Institution

Türkiye Milli Eğitim Bakanlığı (Ministry of National Education of Türkiye)

Thanks

Prof. Dr. Ümit Güner, Prof. Dr. Yasemin Deniz Koç ve Doç. Dr. Özer Özçelik

References

  • Aigner, D., Lovell, C. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6(1), 21-37.
  • Altunbas, Y., Evans, L., & Molyneux, P. (2001). Bank ownership and efficiency. Journal of money, credit and banking, 926-954.
  • Anginer, D., Demirguc-Kunt, A., & Zhu, M. (2014). How does deposit insurance affect bank risk? Evidence from the recent crisis. Journal of Banking & Finance, 48, 312-321.
  • Battese, G. E., & Coelli, T. J. (1992). Frontier production functions, technical efficiency and panel data: with application to paddy farmers in India. Journal of productivity analysis, 3, 153-169.
  • Battese, G. E., & Coelli, T. J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical economics, 20, 325-332.
  • Beck, T. (2002). Deposit insurance as private club: is Germany a model?. The Quarterly Review of Economics and Finance, 42(4), 701-719.
  • Bos, J. W., Koetter, M., Kolari, J. W., & Kool, C. J. (2009). Effects of heterogeneity on bank efficiency scores. European Journal of Operational Research, 195(1), 251-261.
  • Chiaramonte, L., & Casu, B. (2017). Capital and liquidity ratios and financial distress. Evidence from the European banking industry. The British Accounting Review, 49(2), 138-161.
  • Coelli, T. J., Rao, D. S. P., O'Donnell, C. J., & Battese, G. E. (2005). An introduction to efficiency and productivity analysis. springer science & business media.
  • Demirgüç-Kunt, A., & Huizinga, H. (1999). Determinants of commercial bank interest margins and profitability: some international evidence. The World Bank Economic Review, 13(2), 379-408.
  • Deutsche Bundesbank (2016), Annual report , https://www.bundesbank.de/resource/blob/667854/cc3827288ada4404334b3d23fd156470/mL/2016-annual-report-data.pdf
  • Deutsche Bundesbank (2018), Annual report, https://www.bundesbank.d e/resource/blob/779146/28a66617341a428a89608ca281971f3f/mL/2018-annual-report-data.pdf
  • Deutsche Bundesbank (2019), Financial stability review, https://www.bundesbank.de/resource/blob/814946/763140cffc0f97a251036bd496cdd26a/mL/2019-finanzstabilitaetsbericht-data.pdf
  • Faltermeier, R. (2012). The German Banking System–Types of Banks and Experience in the Crisis. Universitätsverlag Potsdam.
  • Goddard, J., Molyneux, P., & Williams, J. (2014). Dealing with cross-firm heterogeneity in bank efficiency estimates: Some evidence from Latin America. Journal of Banking & Finance, 40, 130-142.
  • IMF (2022). Germany financial sector assessment program- August 2022’. IMF country report, No. 22/273.https://www.imf.org//media/Files/Publications/CR/2022/English/1DEUEA2022010.ashx
  • Jovanović, T., Arnold, C., & Voigt, K. I. (2017). Cooperative banks in need of transition: The influence of Basel III on the business model of German cooperative credit institutions. Journal of Co-operative Organization and Management, 5(1), 39-47.
  • King, M. R. (2013). The Basel III net stable funding ratio and bank net interest margins. Journal of Banking & Finance, 37(11), 4144-4156.
  • Kodde, D. A., & Palm, F. C. (1986). Wald criteria for jointly testing equality and inequality restrictions. Econometrica: journal of the Econometric Society, 1243-1248.
  • Koetter, M. (2006). Measurement matters—alternative input price proxies for bank efficiency analyses. Journal of Financial Services Research, 30, 199-227.
  • Lozano-Vivas, A., & Pasiouras, F. (2010). The impact of non-traditional activities on the estimation of bank efficiency: International evidence. Journal of Banking & Finance, 34(7), 1436-1449.
  • Meeusen, W., & van Den Broeck, J. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. International economic review, 435-444.
  • Porath, D., & Koetter, M. (2007). Efficient, Profitable and Safe Banking: An Oxymoron? A Panel VAR Approach.
  • Reinhard, S., Lovell, C. K., & Thijssen, G. J. (2000). Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA. European Journal of Operational Research, 121(2), 287-303.
  • Semih Yildirim, H., & Philippatos, G. C. (2007). Efficiency of banks: Recent evidence from the transition economies of Europe, 1993–2000. European Journal of Finance, 13(2), 123-143.
  • Sheldon, G. (2001). Efficiency and scale economies in European banking: A cross-country comparison. Mimeo.

COST EFFICIENCY OF THE GERMAN BANKING SECTOR

Year 2023, Volume: Aralık Issue: 3, 15 - 26, 31.12.2023

Çağlar Hamarat

Abstract

The stochastic frontier analysis (SFA) and two alternative X-efficiency models are used in this paper in order to assess the cost efficiency of the banking sector in Germany between the years 2015 and 2018. The research's results indicate that German banks' average cost efficiency may range from 57 to 96% and that it changes over time for banks of all sizes. There is no direct correlation between the size of a bank and its level of efficiency, even though the majority of the nation's most prominent financial institutions have efficiency ratings that are higher than the national average. In addition to this, the banking sector in Germany generally benefits from economies of scale. The results of the analysis show that in terms of overall efficiency, German banks that are situated in the western part of the country are superior to those that are located in the eastern part of the country.

Keywords

Bank efficiency scale economies stochastic frontier analysis

References

  • Aigner, D., Lovell, C. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6(1), 21-37.
  • Altunbas, Y., Evans, L., & Molyneux, P. (2001). Bank ownership and efficiency. Journal of money, credit and banking, 926-954.
  • Anginer, D., Demirguc-Kunt, A., & Zhu, M. (2014). How does deposit insurance affect bank risk? Evidence from the recent crisis. Journal of Banking & Finance, 48, 312-321.
  • Battese, G. E., & Coelli, T. J. (1992). Frontier production functions, technical efficiency and panel data: with application to paddy farmers in India. Journal of productivity analysis, 3, 153-169.
  • Battese, G. E., & Coelli, T. J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical economics, 20, 325-332.
  • Beck, T. (2002). Deposit insurance as private club: is Germany a model?. The Quarterly Review of Economics and Finance, 42(4), 701-719.
  • Bos, J. W., Koetter, M., Kolari, J. W., & Kool, C. J. (2009). Effects of heterogeneity on bank efficiency scores. European Journal of Operational Research, 195(1), 251-261.
  • Chiaramonte, L., & Casu, B. (2017). Capital and liquidity ratios and financial distress. Evidence from the European banking industry. The British Accounting Review, 49(2), 138-161.
  • Coelli, T. J., Rao, D. S. P., O'Donnell, C. J., & Battese, G. E. (2005). An introduction to efficiency and productivity analysis. springer science & business media.
  • Demirgüç-Kunt, A., & Huizinga, H. (1999). Determinants of commercial bank interest margins and profitability: some international evidence. The World Bank Economic Review, 13(2), 379-408.
  • Deutsche Bundesbank (2016), Annual report , https://www.bundesbank.de/resource/blob/667854/cc3827288ada4404334b3d23fd156470/mL/2016-annual-report-data.pdf
  • Deutsche Bundesbank (2018), Annual report, https://www.bundesbank.d e/resource/blob/779146/28a66617341a428a89608ca281971f3f/mL/2018-annual-report-data.pdf
  • Deutsche Bundesbank (2019), Financial stability review, https://www.bundesbank.de/resource/blob/814946/763140cffc0f97a251036bd496cdd26a/mL/2019-finanzstabilitaetsbericht-data.pdf
  • Faltermeier, R. (2012). The German Banking System–Types of Banks and Experience in the Crisis. Universitätsverlag Potsdam.
  • Goddard, J., Molyneux, P., & Williams, J. (2014). Dealing with cross-firm heterogeneity in bank efficiency estimates: Some evidence from Latin America. Journal of Banking & Finance, 40, 130-142.
  • IMF (2022). Germany financial sector assessment program- August 2022’. IMF country report, No. 22/273.https://www.imf.org//media/Files/Publications/CR/2022/English/1DEUEA2022010.ashx
  • Jovanović, T., Arnold, C., & Voigt, K. I. (2017). Cooperative banks in need of transition: The influence of Basel III on the business model of German cooperative credit institutions. Journal of Co-operative Organization and Management, 5(1), 39-47.
  • King, M. R. (2013). The Basel III net stable funding ratio and bank net interest margins. Journal of Banking & Finance, 37(11), 4144-4156.
  • Kodde, D. A., & Palm, F. C. (1986). Wald criteria for jointly testing equality and inequality restrictions. Econometrica: journal of the Econometric Society, 1243-1248.
  • Koetter, M. (2006). Measurement matters—alternative input price proxies for bank efficiency analyses. Journal of Financial Services Research, 30, 199-227.
  • Lozano-Vivas, A., & Pasiouras, F. (2010). The impact of non-traditional activities on the estimation of bank efficiency: International evidence. Journal of Banking & Finance, 34(7), 1436-1449.
  • Meeusen, W., & van Den Broeck, J. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. International economic review, 435-444.
  • Porath, D., & Koetter, M. (2007). Efficient, Profitable and Safe Banking: An Oxymoron? A Panel VAR Approach.
  • Reinhard, S., Lovell, C. K., & Thijssen, G. J. (2000). Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA. European Journal of Operational Research, 121(2), 287-303.
  • Semih Yildirim, H., & Philippatos, G. C. (2007). Efficiency of banks: Recent evidence from the transition economies of Europe, 1993–2000. European Journal of Finance, 13(2), 123-143.
  • Sheldon, G. (2001). Efficiency and scale economies in European banking: A cross-country comparison. Mimeo.
There are 26 citations in total.

Details

Primary Language English
Subjects Business Administration, Business Systems in Context (Other)
Journal Section Research Articles
Authors

Çağlar Hamarat 0000-0001-7469-9983

Early Pub Date December 31, 2023
Publication Date December 31, 2023
Published in Issue Year 2023 Volume: Aralık Issue: 3

Cite

APA Hamarat, Ç. (2023). COST EFFICIENCY OF THE GERMAN BANKING SECTOR. İşletme Ve Girişimcilik Araştırmaları Dergisi, Aralık(3), 15-26.
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