EVALUATION OF EFFICIENCY IN THE BANKING SYSTEM IN REPUBLIC OF MOLDOVA

  • Lopotenco Viorica PhD in Economics, Assistant Professor, Republic of Moldova, Chișinău, Academy of Economic Studies of Moldova
Keywords: banking system, banking efficiency, data envelopment analysis, intermediation approach

Abstract

The main objective of this study is to evaluate and analyze the efficiency of the banking system of the Republic of Moldova. To this end, efficiency is determined by the econometric approach, which is calculated by the ratio between outputs and inputs and can be described as the distance between inputs and outputs. For this purpose, the input-oriented CRS efficiency analysis was chosen, as well as the slack analysis of performance in DEAFrontier Software. The intermediation approach has been used in the banks' efficiency assessment. This approach regards the bank as an intermediary of financial services and assumes that banks collect funds for deposits with labor and capital and convert them into loans and other assets.
The conclusions of this study consist in the fact that through realized analysis the evolution of the efficiency of the Moldovan banking system over the last years, as well as the banks with problems in this chapter, has been highlighted.

References

Amable, B., Chatelain, J.B. Efficacité des systèmes financiers et développement économique. In:Revue Economie internationale. nr. 61 / 1995, p.99-130. ISSN: 1240-8093

Farrell, M. The Measurement of Productive Efficiency. In: Journal of the Royal Statistical Society. Series A. Vol. 120, No. 3 (1957), pp. 253-290 [online]. Disponibil: https://www.jstor.org/stable/2343100

Huang, M., Wang, MH. Comparison of economic efficiency estimation methods: Parametric and non-parametric techniques. In: The Manchester School, 70(5), 2002. pp. 682-709. ISSN: 1467-9957

Toma, P., Paolo, P., Zurlini, G., Valente, D., Petrosillo, I. A non-parametric bootstrap-data envelopment analysis approach for environmental policy planning and management of agricultural efficiency in EU countries. In: Ecological Indicators, 83, 2017. pp. 132-143. [online]. Disponibil: https://www.sciencedirect.com/science/article/pii/S1470160X17304624?via%3Dihub

Hughes, J., Mester, L. Who said large banks don’t experience scale economies? Evidence from a risk- return-driven cost function. In: Working Paper Research Department, Federal Reserve Bank of Philadelphia, N. 13-13R, 2013

Sealey, C. W., Lindley, J. T. Inputs, Outputs and a Theory of Production and Cost at Depository Financial Institutions. In: Journal of Finance. Vol. 32, No. 8, 1977. pp. 1251–1266. [online]. Disponibil: http://dx.doi.org/10.1111/j.1540-6261.1977.tb03324.x

Views:

250

Downloads:

251

Published
2019-04-30
Citations
How to Cite
Lopotenco Viorica. (2019). EVALUATION OF EFFICIENCY IN THE BANKING SYSTEM IN REPUBLIC OF MOLDOVA. International Journal of Innovative Technologies in Economy, (3(23), 22-26. https://doi.org/10.31435/rsglobal_ijite/30042019/6452