Development and Efficiency of the Banking Sector in a Transitional Economy: Hungarian Experience

Hasan, Iftekhar; Marton, Katherin

doi:10.2139/ssrn.1016058

Cited by 52 publications

(46 citation statements)

References 36 publications

(12 reference statements)

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“…We do not find a significant difference in risk/return efficiency for foreign or public banks compared to domestic banks. This is in contrast to other studies for emerging economies (see, e.g., Isik and Hassan 2003;Hasan and Marton 2003;Karas et al 2010a). They find that foreign banks outperform their domestic counterparts.…”

Section: Resultscontrasting

confidence: 99%

Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency: Pre- and Post-Crisis Evidence from Turkey

2011

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Does better corporate governance unambiguously improve the risk/return efficiency of banks? Or does either a re-orientation of banks' revenue mix towards more opaque products, an economic downturn, or tighter supervision create off-setting or reinforcing effects? The authors relate bank efficiency to shortfalls from a stochastic risk/return frontier. They analyze how internal governance mechanisms (CEO duality, board experience, political connections, and education profile) and external governance mechanisms (discipline exerted by shareholders, depositors, or skilled employees) determine efficiency in a sample of Turkish banks. The 2000 financial crisis was a wake-up call for bank efficiency and corporate governance. As a result, better corporate governance mechanisms have been able to improve risk/return efficiency when the economic, regulatory, and supervisory environments are more stable and bank products are more complex.

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Section: Resultscontrasting

confidence: 99%

Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency: Pre- and Post-Crisis Evidence from Turkey

2011

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“…22 w represents two input prices: price of funds and a common price of labor and capital. Since personnel expenses are not reported in some quarters, we calculate a common price for labor and capital (see Hasan and Marton 2003). The common price is calculated as the ratio between operating costs and total assets.…”

Section: Discussionmentioning

confidence: 99%

Bank size, competition and risk in the Turkish banking industry

Kasman

2015

Empirica

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This paper investigates the impact of bank size and competition on earnings volatility and insolvency risk using quarterly data for commercial banks operating in the Turkish banking industry for the period 2002Q1-2012Q2. The main result of the paper indicates that bank size and earnings volatility are negatively related, suggesting that larger banks are less risky. The results also indicate that competition measured by the Boone indicator increases earnings volatility. The results further suggest that higher capitalized banks, banks with a higher share of non-interest income in total income and efficient banks face lower earnings volatility. Finally, insolvency risk measured by Z-score and bank size are positively related, suggesting that larger banks are more stable.

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“…7 Some studies have treated equity capital as a netput in the translog function(Berger and Mester 1997;Hasan and Marton 2003;Bonaccorsi di Patti and Hardy 2005;Kraft et al 2006).…”

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confidence: 99%