Measuring financial intermediation

DSpace Repository

Show simple item record

dc.contributor.author Boďa, Martin
dc.contributor.author Zimková, Emília
dc.contributor.other Ekonomická fakulta cs
dc.date.accessioned 2018-09-10
dc.date.accessioned 2018-09-13T08:33:34Z
dc.date.available 2018-09-13T08:33:34Z
dc.identifier.issn 1212-3609
dc.identifier.uri https://dspace.tul.cz/handle/15240/26635
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
dc.relation.ispartof Ahn, H., & Le, M. H. (2014). An insight into the specification of the input-output set for DEA-based bank efficiency measurement. Management Review Quarterly, 64(1), 3-37. https://dx.doi.org/10.1007/s11301-013-0098-9. cs
dc.relation.ispartof Allen, F., & Sanomero, A. M. (2001). What do financial intermediaries do? Journal of Banking & Finance, 25, 271-294. https://dx.doi.org/10.1016/S0378-4266(99)00129-6. cs
dc.relation.ispartof Arayssi, M., & Fakih, A. (2017). Finance–growth nexus in a changing political region: How important was the Arab Spring? Economic Analysis and Policy, 55, 106-123. htttp://dx.doi.org/10.1016/j.eap.2017.05.001. cs
dc.relation.ispartof Beck, T., Colciago, A., & Damjan, P. (2014). The role of financial intermediaries in monetary policy transmission. Journal of Economic Dynamics & Control, 43, 1-11. http://dx.doi.org/10.1016/j.jedc.2014.04.010. cs
dc.relation.ispartof Bhattacharya, S., & Thakor, A. V. (1993). Contemporary banking theory. Journal of Financial intermediation, 3(1), 2-50. https://dx.doi.org/10.1006/jfin.1993.1001. cs
dc.relation.ispartof Boďa, M., & Zimková, E. (2017). Malmquist index analysis of the recent development of the Slovak banking sector from two different angles. Economic Change and Restructuring, 50(2), 95-131. http://dx.doi.org/10.1007/s10644-016-9183-0. cs
dc.relation.ispartof Bogetoft, P., & Otto, L. (2010). Benchmarking with DEA, SFA, and R. New York: Springer, 2010. cs
dc.relation.ispartof Černohorský, J. (2017). Types of bank loans and their impact on economic development: a case study of the Czech Republic. E&M Ekonomie a Management, 20(4), 34-48. https://dx.doi.org/10.15240/ tul/001/2017-4-003. cs
dc.relation.ispartof Čihák, M. et al. (2012). Benchmarking financial systems around the world [Policy Research Working Paper 6175]. The World Bank. Retrieved February 23, 2018, from http://documents.worldbank.org/curated/en/868131468326381955/Benchmarking-financial-systems-around-the-world. cs
dc.relation.ispartof Debreu, G. (1959). Theory of value: an axiomatic analysis of economic equilibrium. New Haven, London: Yale University Press, 2008 (reprint). cs
dc.relation.ispartof Demirguc-Kunt, A., & Levine, R. (1999). Bank-based and market-based financial systems: cross-country comparisons [World Bank Working Paper 2143]. Retrieved February 23, 2018, from http://documents.worldbank.org/curated/en/259341468739463577/Bank-based-and-market-based-financial-systems-cross-country-comparisons. cs
dc.relation.ispartof DiSalvo, J., & Johnston, R. (2017). Banking Trends: The Rise in Loan-to-Deposit Ratios: Is 80 the New 60? [Federal Reserve Bank of Philadelphia]. Retrieved February 23, 2018, from https://www.philadelphiafed.org/research-and-data/banking. cs
dc.relation.ispartof Durusu-Ciftcia, D., Serdar Ispir, M., & Yetkiner, H. (2017). Financial development and economic growth: some theory and more evidence. Journal of Policy Modeling, 39(2), 290-306. https://dx.doi.org/10.1016/j.jpolmod.2016.08.001. cs
dc.relation.ispartof Duygun-Fethi, M., & Pasiouras, F. (2010). Assessing bank efficiency and performance with operational research and artificial intelligence techniques: a survey. European Journal of Operational Research, 204(2), 189-198. https://dx.doi.org/10.1016/j.ejor.2009.08.003. cs
dc.relation.ispartof European Banking Authority. (2017a). Annual report 2016. Retrieved February 23, 2018, from http://www.eba.europa.eu/documents/10180/1879387/EBA+Annual+Report+2016.pdf. cs
dc.relation.ispartof European Banking Authority. (2017b). Risk Assessment Report – November 2017. Retrieved February 23, 2018, from https://www.eba.europa.eu/documents/10180/2037825/Risk+Assessment+Report+-+November+2017.pdf. cs
dc.relation.ispartof Freixas, X., & Rochet, J. C. (2008). Microeconomics of banking (2nd ed.). Cambridge (Massachusetts), London: MIT Press, 2008. cs
dc.relation.ispartof Heffernan, S. (2005). Modern banking (2nd ed.). Chichester (UK): Wiley, 2005. cs
dc.relation.ispartof Law, S. H., & Singh, N. (2014). Does too much finance harm economic growth? Journal of Banking & Finance, 41, 36-44. https://dx.doi.org/10.1016/j.jbankfin.2013.12.020. cs
dc.relation.ispartof Levine, R. (1997). Financial development and economic growth. Journal of Economic Literature, 35(2), 688-726. cs
dc.relation.ispartof McFadden, D. (1978). Cost, revenue, and profit functions. In M. Fuss, & D. McFadden (Eds.), Production economics: a dual approach to theory and applications. Volume I: the theory of production (pp. 3-109). Amsterdam: North-Holland. cs
dc.relation.ispartof McLeay, M., Radia, A., & Thomas, R. (2014). Money creation in the modern economy. Bank of England Quarterly Bulletin, Q1. Retrieved February 23, 2018, from https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy. cs
dc.relation.ispartof Národná banka Slovenska. (2017). Správa o stave a vývoji finančného trhu za rok 2016. Retrieved February 23, 2018, from https://www.nbs.sk/sk/publikacie/publikacie-dohladu/sprava-o-stave-a-vyvoji-financneho-trhu. cs
dc.relation.ispartof Paradi, J., & Zhu, H. (2013). A survey on bank branch efficiency and performance research with data envelopment analysis. Omega, 41(1), 61-79. https://dx.doi.org/10.1016/j.omega.2011.08.010. cs
dc.relation.ispartof Office of the Comptroller of the Currency. (2016). Prohibition against interstate deposit production. Description: annual host state loan-to-deposit ratios [OCC Bulletin 2016-40]. U.S. Department of the Treasury. Retrieved February 23, 2018, from https://www.occ.gov/news-issuances/bulletins/2016/bulletin-2016-40.html. cs
dc.relation.ispartof Samargandi, N., Fidrmuc, J., & Ghosh, S. (2014). Is the relationship between financial development and economic growth monotonic? Evidence from a sample of middle-income countries. World Development, 68, 66-81. https://dx.doi.org/10.1016/j.worlddev.2014.11.010. cs
dc.relation.ispartof Thiel, M. (2001). Finance and economic growth – a review of the theory and the available evidence [Directorate General for Economic and Financial Affairs European Union: Economic paper 158]. Retrieved February 23, 2018, from http://ec.europa.eu/economy_finance/publications/pages/publication884_en.pdf. cs
dc.relation.ispartof Trefis Team. (2017). Loan-to-deposit ratios for largest U.S. banks show signs of recovery in Q1. Retrieved February 23, 2018, from https://www.forbes.com/sites/greatspeculations/2017/06/13/loan-to-deposit-ratios-for-largest-u-s-banks-show-signs-of-recovery-in-q1. cs
dc.relation.ispartof Wilson, P. W. (1993). Detecting outliers in deterministic nonparametric frontier models with multiple outputs. Journal of Business and Economic Statistics, 11(3), 319-323. https://dx.doi.org/10.2307/1391956. cs
dc.relation.ispartof World Bank. (2012). Global financial development report 2013: rethinking the role of the state in finance. Retrieved February 23, 2018, from https://openknowledge.worldbank.org/handle/10986/11848. cs
dc.relation.ispartof Yusifzada, L., & Mammadova, A. (2015). Financial intermediation and economic growth [William Davidson Institute Working Paper Number 1091]. Retrieved February 23, 2018, from http://deepblue.lib.umich.edu/handle/2027.42/132992. cs
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


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search DSpace

Advanced Search

Browse

My Account