Loan efficiency in the Visegrad countries

Financial markets in the Visegrad countries have undergone several changes in lending business over the past decade. This study evaluates the efficiency of the largest commercial banks by focusing on their lending decisions using Data Envelopment Analysis. First, we define the concept of efficiency, then we analyse loan efficiency between 2007 and 2013. The results indicate that average efficiency declined. When we studied the loan efficiency in each country separately, we found that Hungarian banks had the lowest efficiency while the highest efficiency was achieved mainly by Czech banks. The results of the study also suggest that efficiency is positively related to profitability and capital adequacy, and negatively related to the share of non-performing loans, which confirms the bad management hypothesis

Research and development efficiency in public and private sectors: An empirical analysis of EU countries by using DEA methodology

Both the fourth industrial revolution (Industry 4.0) and its embedded technology diffusion exponentially progress and grow in terms of technical change and socioeconomic impact. The aim of this study was the evaluation of research and development efficiency in the public and private sectors in EU countries. The Data Envelopment Analysis (DEA) methodology, within which the slack-based model was applied, was used to achieve this aim. The Malmquist index (MI) was used to calculate changes in research and development efficiency during 2010/2013 and 2014/2017. The results present a decrease in total Research and Development (R&D) productivity in public and private sectors for an average of EU countries (28). However, Spain, Slovenia, and Portugal (in the public sector), and Ireland and Romania (in the private sector) revealed an increase of a total R&D productivity during 2010/2013 and 2014/2017 that was primarily influenced by an increase of technical efficiency (catch-up effect). Similarly, the results confirm the differences in R&D efficiency in private and public sectors in the European countries. The study's results also provide a valuable platform for creators of national strategic and innovative investment and educational plans, and creators of relevant policies and create a platform for national and international benchmarking indicators. © 2020 by the authors.Research and Development Agency GA AA [21/2020]; research project VEGA [1/0794/18

The efficiency of hospitals: Platform for sustainable healthcaresystem

Hospitals and other providers of health services are facing enormous pressure to reduce costs while providing better services for patients without lowering their quality. By utilising a two-stage dynamic Data Envelopment Analysis (DEA) approach, we explore whether there is a compromise between the production of services and the quality of services in the process of providing health care at the level of hospitals in Slovakia. While the first stage deals with the production efficiency of the hospitals, the second stage deals with the quality of service using patient-reported safety and satisfaction measures. The efficiency of hospitals in Slovakia is assessed, using hospital-level data from the database of INEKO for the years 2015 and 2018. In order to dynamically analyse the efficiency changes during the analysed period, the Malmquist index was used. The results revealed that overall technical efficiency increased over the analysed period. We can also see an increase within the service production division as well as service quality division. The results obtained represent a significant platform for the creators of health policy at the national level, and for the creators of the strategic regional health plans as a basis of continuous creation of mechanisms that are inevitable for providing a sustainable system of the Slovak health care at the regional level. The global threats of epidemics, such as COVID-19 pandemic, address the question of public health systems’ sustainability, which enormously increases. © 2020 by author(s) and VsI Entrepreneurship and Sustainability Center.Internal Grant Agency of FaME Tomas Bata University in Zli

What affects the interest rate on deposit from households?

The contribution aim to identify the factors influencing the level of the interest rate in the conditions of the Slovak banking sector. The analysis itself is carried out using a correlation and regression analysis based on quarterly data from the database of National Bank of Slovakia for the period from 1st quarter 2006 to the 4th quarter of 2017. The research has been motivated by the three research questions about the impact of the selected market and intra-bank variables (Does the growth of market concentration lead to a decrease in deposits interest rates? Does the interest rate on the interbank market have a positive impact on deposits interest rates? Does the growth of liquidity lead to a decrease in deposits interest rates?). Based on the results of regression model we have found out, that the increasing concentration, declining interbank interest rate, disinflation, increasing bank capitalisation and declining bank liquidity have a significant impact on the decline in interest rates on deposit products under the conditions of the Slovak banking sector. This support the Structure-conductperformance hypothesis which states that higher market concertation leads to less favourable pricing to customers. We have also found out, that highly capitalised banking sector has a lower pass-through for deposits, which means that the pricing behaviour of this banking sector is least tied to market development. So when the market rate decrease, the deposit rate of highly capitalised banking sector must also decrease and this decrease must be higher than the decrease in market rate.Web of Science152574

Health system efficiency in OECD countries: dynamic network DEA approach

Background In recent years, measuring and evaluating the efficiency of health systems has been explored in the context of seeking resources to ensure the sustainability of 'countries' health and social systems and addressing various crises in the health sector. The study aims to quantify and compare the efficiency of OECD health systems in 2000, 2008, and 2016. The contribution to research in the field of efficiency in the healthcare system can be seen in the application of Dynamic Network Data Envelopment Analysis (DNDEA), which help us to analyse not only the overall efficiency of the healthcare system but analyse the overall efficiency as the result of the efficiencies of individual interconnected areas (public and medical care area). By applying the DNDEA model, we can realise the analysis not only within one year, but we can find out if the measures and improvements taken in the healthcare sector have a positive impact on its efficiency in a later period (eight-year interval). Methods The analysis focuses on assessing the efficiency of the health systems of OECD countries over three periods: 2000, 2008, and 2016. Data for this study were derived from the existing OECD database, which provides aggregated data on OECD countries on a comparable basis. In this way, it was possible to compare different countries whose national health statistics may have their characteristics. The input-oriented Dynamic Network Data Envelopment Analysis model was used for data processing. The efficiency of OECD health systems has been analysed and evaluated comprehensively and also separately in two divisions: public health sub-division and medical care sub-division. The analysis combines the application of conventional and unconventional methods of measuring efficiency in the health sector. Results The results for the public health sub-division, medical care sub-division and overall health system for OECD countries under the assumption of constant returns to scale indicate that the average overall efficiency was 0.8801 in 2000, 0.8807 in 2008 and 0.8472 in 2016. The results of the input-oriented model with the assumption of constant returns to scale point to the overall average efficiency of health systems at the level of 0.8693 during the period. According to the Malmquist Index results, the OECD countries improved the efficiency over the years, with performance improvements of 19% in the public health division and 8% in the medical care division. Conclusions The results of the study are beneficial for health policymakers to assess and compare health systems in countries and to develop strategic national and regional health plans. Similarly, the result will support the development of international benchmarks in this area. The issue of health efficiency is an intriguing one that could be usefully explored in further research. A greater focus on combining non-parametric and parametric models could produce interesting findings for further research. The consistency in the publication and updating of the data on health statistics would help us establish a greater degree of accuracy.Internal Grant Agency of FaME Tomas Bata University in Zlin [RO/2020/05]Univerzita Tomáše Bati ve Zlíně: RO/2020/05; European Regional Development Fund, ERD

Comparison of selected methods for performance evaluation of Czech and Slovak commercial banks

The successful development of economy is based on the efficient and stable performance of commercial banks. A broad range of methods is used to evaluate them. Each method has its own specific features and logic, which results in the existence of discrepancies in the results of their evaluation. For this reason, as well as due to the elimination of model risk, numerous methods are recommended in practice to detect multidimensional disproportions in bank performance and to create a comparator base. This led to the realization of the research aimed at assessing the performance of selected Czech and Slovak banks by applying several methods and evaluating the process and outcome differences of these methods. The data were obtained from the non-consolidated financial statements published in the annual reports of the evaluated banks. The analysis showed that all methods have roughly the same results. Almost perfect correlation had been found not only among the methods of multi-criteria evaluation, but also among the other investigators. © 2017 Vilnius Gediminas Technical University (VGTU) Press.VEGA 1/0446/15, VEGA, Vedecká Grantová Agentúra MŠVVaŠ SR a SAVSlovak Scientific Grant Agency within VEGA [1/0446/15

The use of credit cards and bank efficiency

The dynamic development of the use of credit cards there in recent years in all EU Member States, as evidenced by the growth of ATM, EFTPOS terminals, and the value of payments made by them. The aim of this paper was to analyse whether the development of the use of payment cards have a positive impact on the efficiency of the EU banking sector measured by DEA models. The starting point was the status of selected variables (number of ATM and EFTPOS terminals, total assets to a credit institution, the value of payments made via ATM and EFTPOS terminals per capita, the value of deposits and loans) in the banking sectors of the 27 EU countries in 2001 and 2011. Considered variables in these years became the basis for evaluating the effectiveness by CCR and BCC input oriented model. Calculation of the efficiency score was found to Belgium, Cyprus, Denmark, France, Italy, Malta, Poland and Slovakia were positively influenced by the use of credit cards. For these countries, the percentage increase in the number of ATMs and terminals exceeded the percentage increase in the value of payments made, which resulted in the growth of efficiency score in those countries. On the other hand, in countries such as Bulgaria, Romania, Czech Republic, Estonia, Hungary, there is a decrease in efficiency due to higher growth in the number of ATM and terminals, compared with the growth rate of the value of payments made by them. In the group of analysed countries, there were the countries with such a structure of input and output parameters in both years were able to maintain the effectiveness (Finland, Germany, Ireland, Italy, Luxembourg, and United Kingdom). DEA analysis results confirm the assumption that if an increasing number of devices aren’t supported by the use of the clients, it will have the negative impact of the banking sector in the form of lost efficiency. The results of the correlation and regression analysis confirmed a significant impact of parameters (number of ATM and terminals; values of payments) to achieved efficiency

The Role of Banks in Financing the Slovak Agricultural Sector

A well-developed financial system plays an important role in financing individual sectors in the country. In this paper, we analyse credit development in the agricultural sector in the Slovak Republic from various perspectives. We examine the relationship between the agricultural sector's characteristics and the volume of funding at the regional level. The paper's methodology is based on a k-means algorithm for clustering the Slovak regions with four criteria. Then we examine the relationship between financial development and agricultural growth by employing the Cobb-Douglas production function. This study uses annual data covering the period from 2008 to 2019. The results reveal that financial development has a significant and positive effect on agricultural production and agricultural growth

Using Data Envelopment Analysis in Credit Risk Evaluation of ICT Companies

The aim of the paper is to explore possibilities of diagnosis corporate credit risk through DEA and design an appropriate model for diagnosis of credit risk, which can be used in different sectors of national economy (e.g. agricultural, service sector or industry and innovation sector). The model differs from the conventional application of DEA because of variables selection and construction of production-possibility frontier. We illustrate application of models on sample 110 randomly selected companies during the 2013-2017 period. The reason for choosing the ICT companies is the fact that this sector is considered to be driving force behind the growth of the economy. The data has been obtained from Finstat. The results are divided into identification of 3 zones of corporate financial health with a different stage of credit risk. They show that DEA achieves a satisfactory value of a correct classification into the relevant zone (financial health, grey, and financial distress zone), but also the relatively high error rate of the DEA in the identification of companies in financial distress

Using Data Envelopment Analysis in Credit Risk Evaluation of ICT Companies

The aim of the paper is to explore possibilities of diagnosis corporate credit risk through DEA and design an appropriate model for diagnosis of credit risk, which can be used in different sectors of national economy (e.g. agricultural, service sector or industry and innovation sector). The model differs from the conventional application of DEA because of variables selection and construction of production-possibility frontier. We illustrate application of models on sample 110 randomly selected companies during the 2013-2017 period. The reason for choosing the ICT companies is the fact that this sector is considered to be driving force behind the growth of the economy. The data has been obtained from Finstat. The results are divided into identification of 3 zones of corporate financial health with a different stage of credit risk. They show that DEA achieves a satisfactory value of a correct classification into the relevant zone (financial health, grey, and financial distress zone), but also the relatively high error rate of the DEA in the identification of companies in financial distress