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

Abstract

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
Volume60
Issue number4
DOIs
StatePublished - Jul 1 2008

All Science Journal Classification (ASJC) codes

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

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