Bank x-efficiency in Ukraine: An analysis of service characteristics and ownership

Larissa Kyj, Ihsan Isik

    Research output: Contribution to journalArticlepeer-review

    27 Scopus citations


    This paper investigates managerial and scale x-efficiencies of commercial banks in Ukraine from 1998 to 2003. A large number of banks would suggest competition and efficiency. Ukrainian banks waste half of factor inputs during the production of services by operating off the efficient frontier. Large banks dominate in managerial efficiency; small banks are superior in scale efficiency. Significant numbers of small banks experience increasing returns to scale. Consolidation between small banks may help banks exploit economies of scale and become attractive foreign investment targets. Evidence suggests majority foreign owned joint ventures are optimal formats; banks operating in industrial, politically favored areas outperform others.

    Original languageEnglish (US)
    Pages (from-to)369-393
    Number of pages25
    JournalJournal of Economics and Business
    Issue number4
    StatePublished - Jul 2008

    All Science Journal Classification (ASJC) codes

    • Business, Management and Accounting(all)
    • Economics and Econometrics


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