Efficiency in the Greek Banking Industry: A Comparison of Foreign and Domestic Banks

References

• Abdul Majid , Muhamed, Zulkhibri and Sufian , Fadzlan . 2008 . “ Bank efficiency and share prices in China: Empirical evidence from a three‐stage banking model ” . MPRA Paper No. 12120. Available at: http://mpra.ub.uni-muenchen.de/12120
   Google Scholar
• Asmild , Mette , Paradi , Joseph C. , Aggarwall , Vanita and Schaffnit , Claire . 2004 . Combining DEA window analysis in the Malmquist index approach in a study of the Canadian banking industry . Journal of Productivity Analysis , 21 : 67 – 89 .
   Web of Science ®Google Scholar
• Ataullah , Ali , Cockerill , Tony and Le , Hang . 2004 . Financial liberalization and bank efficiency: a comparative analysis of India and Pakistan . Applied Economics , 36 : 1915 – 1924 .
   Web of Science ®Google Scholar
• Avkiran , Necmi K. 2004 . Decomposing technical efficiency and window analysis . Studies in Economics and Finance , 22 : 61 – 91 .
   Google Scholar
• Bank of Greece (2004) Bank of Greece Annual Report. Available at: http://www.bankofgreece.gr/en/publications/report.htm
   Google Scholar
• Banker , R.D. , Charnes , A. and Cooper , W.W. 1984 . Some models for estimating technical and scale inefficiencies in data envelopment analysis . Management Science , 30 : 1078 – 1092 .
   Web of Science ®Google Scholar
• Barajas , Addfo , Steiner , Roberto and Salazar , Natolia . 2000 . “ Foreign investment in Colombia’s financial sector ” . In The Internationalization of Financial Services: Issues and Lessons for Developing Countries , Edited by: Claessens , S. and Jansen , M. Boston : Kluwer Academic Press .
   Google Scholar
• Bell , D. , Kay , J. and Malley , J. 1996 . A non‐parametric approach to non‐linear causality testing . Economics Letters , 51 : 7 – 18 .
   Web of Science ®Google Scholar
• Berger , Allen N. and Mester , Lorretta J. 2003 . Explaining the dramatic changes in performance of US banks: technological change, deregulation, and dynamic changes in competition . Journal of Financial Intermediation , 12 : 57 – 95 .
   Web of Science ®Google Scholar
• Berger , Allen N. , DeYoung , Roberto , Genay , Hesna and Udell , Gregory F. 1999 . “ Globalization of financial institutions: evidence from cross‐border banking performance. Working Paper 99–25 ” . Research Department, Federal Reserve Bank of Chicago .
   Google Scholar
• Berger , Allen N. , Hasan , Iftekhar and Klapper , Leora F. 2004 . Further evidence on the link between finance and growth: an international analysis of community banking and economic performance . Journal of Financial Services Research , 25 : 169 – 202 .
   Google Scholar
• Bonin , John P. , Hasan , Iftekhar and Wachtel , Paul . 2005 . Bank performance, efficiency and ownership in transition countries . Journal of Banking and Finance , 29 : 31 – 53 .
   Web of Science ®Google Scholar
• Boussofiane , Aziz , Dyson , Robert G. and Thanassoulis , Emmanuel . 1991 . Applied data envelopment analysis . European Journal of Operational Research , 52 : 1 – 15 .
   Web of Science ®Google Scholar
• Chang , Edward C. , Hasan , Iftekhar and Hunter , William . 1998 . Efficiency of multinational banks: An empirical investigation . Applied Financial Economics , 8 : 689 – 696 .
   Google Scholar
• Charnes , A. , Clark , C.T. , Cooper , W.W. and Golany , B. 1985 . A developmental study of data envelopment analysis in measuring the efficiency of maintenance units in the US Air Forces . Annals of Operations Research , 2 : 95 – 112 .
   Google Scholar
• Charnes , A. , Cooper , W.W. and Rhodes , E. 1978 . Measuring the efficiency of decision making units . European Journal of Operational Research , 2 : 429 – 444 .
   Web of Science ®Google Scholar
• Chung , Shu‐Hsing , Lee , Amy Hsin‐I. , Kang , He‐Yau and Lai , Chih‐Wei . 2008 . A DEA window analysis on the product family mix selection of a semiconductor fabricator . Expert Systems with Applications , 35 : 379 – 388 .
   Web of Science ®Google Scholar
• Cleveland , William S. 1979 . Robust locally weighted regression and smoothing scatterplots . Journal of the American Statistical Association , 74 : 829 – 836 .
   Web of Science ®Google Scholar
• Cleveland , William S. and Devlin , Susan J. 1988 . Locally weighted regression: an approach to regression analysis by local fitting . Journal of the American Statistical Association , 83 : 596 – 610 .
   Web of Science ®Google Scholar
• Coelli , Timothi J. , Prasada Rao , D.S. , O’Donnell , Christopher J. and Battese , George E. 2005 . An Introduction to Efficiency and Productivity Analysis , 2nd edn , USA : Kluwer Academic Publishers .
   Google Scholar
• Crystal , Jennifer B. , Dages , Gerard and Goldberg , Linda . 2001 . “ Does foreign ownership contribute to sounder banks in emerging markets? ” . In The Latin American experience, Federal Reserve Bank of NEW York Staff Reports Vol. 137 ,
   Google Scholar
• Das , Abhiman and Ghosh , Saibal . 2006 . Financial deregulation and efficiency: An empirical analysis of Indian banks during the post reform period . Review of Financial Economics , 15 : 193 – 221 .
   Google Scholar
• Delis , Manthos D. , Koutsomanoli‐Fillipaki , Anastasia , Staikouras , Christos K. and Gerogiannaki , Katerina . 2009 . Evaluating cost and profit efficiency: a comparison of parametric and nonparametric methodologies . Applied Financial Economics , 19 : 191 – 202 .
   Google Scholar
• DeYoung , Robert and Nolle , Daniel E. 1996 . Foreign‐owned banks in the United States: Earning market share or buying it? . Journal of Money, Credit and Banking , 28 : 622 – 636 .
   Web of Science ®Google Scholar
• Drake , Leigh , Hall , Maximilian J.B. and Simper , Richard . 2006 . The impact of macroeconomic and regulatory factors on bank efficiency: A non‐parametric analysis of Hong Kong’s banking system . Journal of Banking and Finance , 30 : 1443 – 1466 .
   Web of Science ®Google Scholar
• Dyson , R.G. , Allen , R. , Camanho , A.S. , Podinovski , V.V. , Sarrico , C.S. and Shale , E.A. 2001 . , Pitfalls and protocols in DEA . European Journal of Operational Research , 132 : 245 – 259 .
   Web of Science ®Google Scholar
• Fries , Stephen and Taci , Anita . 2005 . Cost efficiency of banks in transition: Evidence from 289 banks in 15 post‐communist countries . Journal of Banking and Finance , 29 : 55 – 81 .
   Web of Science ®Google Scholar
• Hasan , Iftekhar and Hunter , William C. 1996 . “ Efficiency of Japanese multinational banks in the United States ” . In Research in Finance , Edited by: Chen , A.H. Vol. 14 , 157 – 173 . London : JAI Press .
   Google Scholar
• Hasan , Iftekhar and Lozano‐Vivas , Ana . . Foreign banks, production technology, and efficiency: Spanish experience . Paper presented at the Georgia Productivity Workshop III . Athens, Georgia.
   Google Scholar
• Hasan , Iftekhar , Koetter , Michael and Wedow , Michael . 2007 . The quality of banking and regional growth , Deutsche Bundesbank Discussion Paper Series 2: Banking and Financial Studies No 10/2007
   Google Scholar
• Hauner , David . 2005 . Explaining efficiency differences among large German and Austrian banks . Applied Economics , 37 : 969 – 980 .
   Web of Science ®Google Scholar
• Havrylchyk , Olena . 2006 . Efficiency of the Polish banking industry: Foreign versus domestic banks . Journal of Banking and Finance , 30 : 1975 – 1996 .
   Web of Science ®Google Scholar
• Hymer , Stephen H. 1960 . “ The international operations of national firms: a study of direct foreign investment. PhD Dissertation. Published posthumously ” . Cambridge, Mass : The MIT Press, 1976 .
   Google Scholar
• Jacoby , William G. 2000 . Loess: a nonparametric, graphical tool for depicting relationships between variables . Electoral Studies , 19 : 577 – 613 .
   Web of Science ®Google Scholar
• Kosmidou , Kyriaki , Pasiouras , Fotios and Tsaklanganos , Angelos . 2007 . Domestic and multinational determinants of foreign bank profits: The case of Greek banks operating abroad . Journal of Multinational Financial Management , 17 : 1 – 15 .
   Google Scholar
• Kosmidou , K. , Pasiouras , F. , Doumpos , M. and Zopounidis , C. 2004 . “ Foreign versus domestic banks’ performance in the UK: A multicriteria approach ” . In Computational Management Science 329 – 343 .
   Google Scholar
• Kraft , Evan , Hofler , Richard and Payne , James . 2006 . Privatization, foreign bank entry and bank efficiency in Croatia: a Fourier‐flexible function stochastic cost frontier analysis . Applied Economics , 38 : 2075 – 2088 .
   Web of Science ®Google Scholar
• Kumbhakar , Subal C. and Tsionas , Efthymios G. 2008 . Scale and efficiency measurement using a semiparametric stochastic frontier model: evidence from the U.S. commercial banks . Empirical Economics , 34 : 585 – 602 .
   Web of Science ®Google Scholar
• Lensink , R. and Hermes , N. 2004 . The short‐term effects of foreign bank entry on domestic bank behaviour: Does economic development matter? . Journal of Banking and Finance , 28 : 553 – 568 .
   Web of Science ®Google Scholar
• Levine , Ross . 1996 . “ Foreign banks, financial development, and economic growth ” . In International Financial Markets , Edited by: Claude , E.B. Washington, DC : AEI Press .
   Google Scholar
• Levine , Ross . 2005 . “ Finance and growth: theory and evidence ” . In Handbook of Economic Growth , 1st edn Edited by: Aghion , P. and Durlauf , S. Vol. 1, Ch. 12 , 865 – 934 .
   Google Scholar
• Mahajan , Arvind , Rangan , Nanda and Zardkoohi , Asghar . 1996 . Cost structures in multinational and domestic banking . Journal of Banking and Finance , 20 : 283 – 306 .
   Web of Science ®Google Scholar
• Maudos , J. , Pastor , J.M. and Perez , F. 2002 . Competition and efficiency in the Spanish banking sector: The importance of specialization . Applied Financial Economics , 12 : 505 – 516 .
   Google Scholar
• Noulas , Athanasios G. 2001 . Deregulation and operating efficiency: the case of the Greek banks . Managerial Finance , 27 : 35 – 47 .
   Google Scholar
• Nunamaker , Thomas R. 1985 . Using data envelopment analysis to measure the efficiency of non‐profit organizations: a critical evaluation . Managerial and Decision Economics , 6 : 50 – 58 .
   Web of Science ®Google Scholar
• Okuda , Hidenobu and Rungsomboon , Suvadee . 2006 . Comparative cost study of foreign and Thai domestic banks in 1990–2002: Is policy implications for a desirable banking industry structure . Journal of Asian Economics , 17 : 714 – 737 .
   Google Scholar
• Pasiouras , Fotios . 2008a . Estimating the technical and scale efficiency of Greek commercial banks: the impact of credit risk, off‐balance sheet activities, and international operations . Research in International Business and Finance , 22 : 301 – 308 .
   Google Scholar
• Pasiouras , Fotios . 2008b . International evidence on the impact of regulations and supervision on banks’ efficiency: an application of two‐stage data envelopment analysis . Review of Quantitative Finance & Accounting , 30 : 187 – 223 .
   Google Scholar
• Pasiouras , Fotios , Liadaki , Aggeliki and Zopounidis , Constantin . 2008 . Bank efficiency and share performance: Evidence from Greece . Applied Financial Economics , 18 : 1121 – 1130 .
   Google Scholar
• Peek , Joe and Rosengren , Eric S. 2000 . Implications of the globalization of the banking sector: the Latin American experience . New England Economic Review , : 45 – 62 .
   Google Scholar
• Rao , Ananth . 2005 . Cost frontier efficiency and risk‐return analysis in an emerging market . International Review of Financial Analysis , 14 : 283 – 303 .
   Google Scholar
• Rogers , Kevin E. 1998 . Nontraditional activities and the efficiency of US commercial banks . Journal of Banking and Finance , 22 : 467 – 482 .
   Web of Science ®Google Scholar
• Sathye , Milind . 2001 . X‐efficiency in Australian banking: An empirical investigation . Journal of Banking and Finance , 25 : 613 – 630 .
   Web of Science ®Google Scholar
• Saxonhouse , Gary R. 1976 . Estimated parameters as dependent variables . American Economic Review , 66 : 178 – 183 .
   Web of Science ®Google Scholar
• Sensarma , Rudra . 2006 . Are foreign banks always the best? Comparison of state‐owned, private and foreign banks in India . Economic Modelling , 23 : 717 – 735 .
   Web of Science ®Google Scholar
• Shanmugam , K.R. and Das , A. 2004 . Efficiency of Indian commercial banks during the reform period . Applied Financial Economics , 14 : 681 – 686 .
   Google Scholar
• Soteriou , Andreas and Zenios , Stavros . 1998 . “ Data Envelopment Analysis: An introduction and an application to bank branch performance assessment ” . In Modern Methods for Business Research , Edited by: Marcoulides , G. London : Lawrence Erlbaum Associates .
   Google Scholar
• Stiglitz , Joseph E. . The role of the state in financial markets . Proceedings of the World Bank Annual Conference on Development Economics . pp. 19 – 52 .
   Google Scholar
• Stiroh , Kevin J. 2000 . How did bank holding companies prosper in the 1990s . Journal of Banking and Finance , 24 : 1703 – 1745 .
   Web of Science ®Google Scholar
• Sturm , Jan‐Egbert and Williams , Bary . 2004 . Foreign bank entry, deregulation and bank efficiency: Lessons from the Australian experience . Journal of Banking & Finance , 28 : 1775 – 1799 .
   Web of Science ®Google Scholar
• Sufian , Fadzlan and Abdul Majid , Muhamed Zulkhibri . 2007 . X‐efficiency and share prices in the Singaporean banking sector: A DEA window analysis approach . Investment Management and Financial Innovations , 4 : 73 – 90 .
   Google Scholar
• Thanassoulis , Emmanuel . 2001 . Introduction to the Theory and Application of Data Envelopment Analysis. A Foundation Text with Integrated Software , USA : Kluwer Academic Publishers .
   Google Scholar
• Tsionas , Efthymios G. , Lolos , Saranbis E.G. and Christopoulos , Dimitris K. 2003 . The performance of the Greek banking system in view of the EMU: results from a non‐parametric approach . Economic modelling , 20 : 571 – 592 .
   Web of Science ®Google Scholar
• Webb , Robert M. 2003 . Levels of efficiency in UK retail banks: a DEA window analysis . International Journal of the Economics of Business , 10 : 305 – 322 .
   Google Scholar
• Weill , Laurent . 2003 . Banking efficiency in transition economies. The role of foreign ownership . Economics of Transition , 11 : 569 – 592 .
   Web of Science ®Google Scholar
• Williams , Barry . 1998 . A pooled study of the profits and size of foreign banks in Australia . Journal of Multinational Financial Management , 8 : 211 – 231 .
   Google Scholar
• Yildirim , Semih H. and Philippatos , George C. 2007 . Efficiency of banks: recent evidence from the transition economics of Europe, 1993–2000 . The European Journal of Finance , 13 : 123 – 143 .
   Google Scholar
• Zaheer , Srilata . 1995 . Overcoming the liability of foreignness . Academy of Management Journal , 38 : 341 – 363 .
   Web of Science ®Google Scholar