Bank Efficiency in Bulgaria in the Period 2007-2013: Application of Parametric Method Stochastic Frontier Analysis (SFA)

Authors

Keywords
bank efficiency, SFA analysis

Summary
The study uses a nontraditional method for the measurement of bank efficiency - parametric method "stochastic frontier analysis" (SFA), to help analyze the efficiency of the entire banking system in Bulgaria and individual groups of banks by ownership. This method has been applied in numerous studies of bank efficiency in a group of countries, but it is not used for the purpose of measuring the efficiency of the Bulgarian banking system. The survey results show that foreign banks are the most efficient banks in the economy and determine the dynamics of the efficiency of the banking system. Their better performance is explained by the technology and experience they have.

JEL: D24, G21
Pages: 9
DOI: 

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