Measuring financial intermediation

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Show simple item record Boďa, Martin Zimková, Emília
dc.contributor.other Ekonomická fakulta cs 2018-09-10 2018-09-13T08:33:34Z 2018-09-13T08:33:34Z
dc.identifier.issn 1212-3609
dc.description.abstract The paper proposes a model for measuring the attainment in financial intermediation that answers to situations when functions of financial intermediaries from a macroeconomic viewpoint may be primarily reduced to taking deposits and providing loans (which is characteristic of financial sectors of Post-Communist economies or economies with underdeveloped financial markets). The model builds on the methodology of Data Envelopment Analysis [DEA] since it estimates the production possibility set in a traditional manner as a conical or convex hull of observed production activities. Unlike DEA, the model seeks simultaneously to deflate only deposits and inflate loans to a greatest extent possible so that the production activity of a financial intermediary (typically a bank) remains feasible and stays in the estimated production possibility set. The model translates the identified slacks in deposits and loans into a metric that measures by which factor it is feasible to increase multiplicatively the actually observed loan-to-deposit ratio of a financial intermediary. The metric is computable for individual banks on a yearly basis, but is equally aggregable for a bank over the entire period. In contrast to traditional usage of DEA for efficiency measurement, the proposed model is associated more with the notion of productivity in financial intermediation rather than with the concept of efficiency. The model is presented and demonstrated in a case study of Slovak commercial banks for the period from 2008 to 2016. It is found that only smaller organizational units (smaller banks and branch offices of foreign banks) were in the past few years capable of financial intermediation at the best utilization of their resources, which is an observation relevant from a regulatory point of view. en
dc.format text
dc.format.extent 16 stran cs
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
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dc.relation.ispartof Economics and Management en
dc.rights CC BY-NC
dc.subject financial intermediation en
dc.subject loan-to-deposit ratio en
dc.subject data envelopment analysis en
dc.subject Slovak commercial banks en
dc.subject.classification D24
dc.subject.classification G21
dc.title Measuring financial intermediation en
dc.title.alternative a model and application to the Slovak banking sector en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2018-3-010
dc.identifier.eissn 2336-5604
local.relation.volume 21
local.relation.issue 3
local.relation.abbreviation E+M cs
local.relation.abbreviation E&M en
local.faculty Faculty of Economics
local.citation.spage 155
local.citation.epage 170
local.access open
local.fulltext yes
local.filename EM_3_2018_10

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