Measuring the efficiency and productivity of the Croatian banks with Malmquists index of change of total factor productivity

In the literature that deals with the empirical measurement of relative technical efficiency and change in the productiveness of banks over time the Malmquist index of change of total factor productivity has become the most often-used analytical tool. It has been shown that the Malmquist index helps both central and commercial bank analysis to monitor trends within the banking sector, and that it can be used as assistance in controlling the system and in strategic planning. This investigation is directed at the relative comparison of banks within the banking sector of Croatia in the period from 2000 to 2003, and is the first paper in which the Croatian banking sector has been analysed with the application of the Malmquist index of change in total factor productivity. The scientific contribution deriving from this is heightened by the interdisciplinarity that informs the paper. The primary objective of the investigation is the monitoring of relative trends of banks inside the very dynamic Croatian banking sector. Focus is placed on the need for the development of additional models to cover alternative and above all off-balance-sheet indicators.Malmquist TFP index, banking performance

Mjerenje efikasnosti i produktivnosti hrvatskih banaka Malmquistovim indeksom promjene ukupne faktorske produktivnosti

U znanstvenoj literaturi koja se bavi empirijskim mjerenjem relativne tehničke efikasnosti i promjene produktivnosti banaka tijekom vremena Malmquistov indeks promjene ukupne faktorske produktivnosti postao je najčešće korišteno analitičko oruđe. Pokazalo se da Malmquistov indeks pomaže i analitičarima središnje banke, kao i analitičarima komercijalnih banaka u praćenju kretanja unutar bankovnog sektora, te se može iskoristiti kao pomoć u nadzoru sustava ili pri strateškom planiranju. Ovo je istraživanje usmjereno na relativnu usporedbu banaka unutar bankovnog sektora Hrvatske u razdoblju od 2000. do 2003. godine i prvi je rad u kojemu se analizira hrvatski bankovni sektor primjenom Malmquistova indeksa promjene ukupne faktorske produktivnosti. Znanstveni doprinos koji proizlazi iz te činjenice, dodatno je potenciran interdisciplinarnošću kojom je rad prožet. Primarni cilj istraživanja jest praćenje relativnih kretanja banaka unutar vrlo dinamičnoga bankovnog sektora Hrvatske. Istaknuta je potreba izgradnje modela koji obuhvaćaju alternativne, prije svega, izvanbilančne pokazatelje

Measuring the Efficacy and Productiveness of Croatian Banks with the Malmquist Index of Change in Total Factor Productivity

In the literature that deals with the empirical measurement of relative technical efficiency and change in the productiveness of banks over time the Malmquist index of change of total factor productivity has become the most often-used analytical tool. It has been shown that the Malmquist index helps both central and commercial bank analysis to monitor trends within the banking sector, and that it can be used as assistance in controlling the system and in strategic planning. This investigation is directed at the relative comparison of banks within the banking sector of Croatia in the period from 2000 to 2003, and is the first paper in which the Croatian banking sector has been analysed with the application of the Malmquist index of change in total factor productivity. The scientific contribution deriving from this is heightened by the interdisciplinarity that informs the paper. The primary objective of the investigation is the monitoring of relative trends of banks inside the very dynamic Croatian banking sector. Focus is placed on the need for the development of additional models to cover alternative and above all off-balance-sheet indicators