DETERMINANTS OF EFFICIENCY IN ALBANIAN BANKING INDUSTRY; AN EMPIRICAL DIAGNOSIS
AbstractMany articles discuss the importance of banking systems and their profitability as well as the factors determining these. This article examines the determinants of bank efficiency in the Albanian banking industry. During the second half of this decade a considerable decrease in the efficiency ratio of the Albanian banking system was evident. To understand which factors affected the efficiency, and whether Albania should control certain factors in order to improve efficiency, relationships between particular factors were analyzed using
a multiple regression analysis. The study examines 16 commercial banks in Albania, from 1998 to 2015. It finds a significant relationship between efficiency, capital adequacy, the return on assets, and solvency
Abbasoglu, F. O., Aysan, F.A. & Gunes, A. (2007). “Concentration, Competition, Efficiency And Profitability of the Turkish Banking Sector in the Post-Crisis Period”. Banks and Bank Systems, Vol 2, Issue 3. pp 106- 115.
Berger, A. N. & Humprey.B., (1997). Efficiency of Financial Institutions: International survey and directions for future research, European Journal of Operations Research, 98, 175- 212.
Berger, A.N. (1995). The Profit-Structure Relationship in banking- Tests of Market Power and Efficient-Structure Hypotheses, Journal of Money, Credit and Banking, Vol.27,N.2, pp.404-431.
Berger, A.N., De Young R. (1997). Problem loans and cost efficiency in commercial banking. Journal of Banking and Finance 21, 849-870.
Casu, B. & Girardone, C. (2009). Testing the relationship between competition and efficiency in banking: A panel data analysis. Economics Letters 105, 134-137.
Demirgüç, K. & Detragiache, E. (2005). Cross Country Empirical Studies of Systemic Bank Distress:A Survey, IMF Working Paper.
Ferrouhi, M. & Agdal, M. (2014). “Liquidity and Solcency in the International Banking Regulation,” Paper presented in The Clue Institute: International Academic Conference. Germany.
Fiordelisi, F., Ibanez, M. D. & Molyneux, P. (2010). “Efficiency and Risk in European Banking”. European Central Bank Working Paper Series, No 1211.
Hughes, P. J., & Mester, J. L. (2008). “Efficiency in Banking: Theory, Practice and Evidence”, Oxford Handbook of Banking.
Jackson, P., Perraudin, W., & Saporta, V. (2002). Regulatory and economic solvency standards for internationally active banks. (Bank of England working papers, N°161). Bank of England.
Jiao, T., Koning, M., Mertens, G. & Roosenboom, P. (2012). Mandatory IFRS adoption and its impact on analysts' forecasts. International Review of Financial Analysis, No.21, pp. 56–63.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (Creative Commons Attribution License 3.0 - CC BY 3.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
firstname.lastname@example.org, www.iseic.cz, ojs.journals.cz