|
Archive@NYU >
Stern School of Business >
Salomon Center >
Financial Institutions >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/26989
|
| Title: | Privatization Matters: Bank Efficiency in Transition Countries |
| Authors: | Wachtel, Paul
Bonin, John
Hasan, Iftekhar |
| Issue Date: | Mar-2004 |
| Series/Report no.: | S-FI-04-04 |
| Abstract: | To investigate the impact of bank privatization in transition countries,
we take the largest banks in six relatively advanced countries, namely,
Bulgaria, the Czech Republic, Croatia, Hungary, Poland and Romania.
Income and balance sheet characteristics are compared across four bank
ownership types. Efficiency measures are computed from stochastic
frontiers and used in ownership and privatization regressions having
dummy variables for bank type. Our empirical results support the
hypotheses that foreign-owned banks are most efficient and
government-owned banks are least efficient. In addition, the importance
of attracting a strategic foreign owner in the privatization process is
confirmed. However, counter to the conjecture that foreign banks cream
skim, we find that domestic banks have a local advantage in pursuing
fee-for-service business. Finally, we show that both the method and the
timing of privatization matter to efficiency; specifically, voucher
privatization does not lead to increased efficiency and early privatized
banks are more efficient than later-privatized banks even though we find
no evidence of a selection effect. |
| URI: | http://hdl.handle.net/2451/26989 |
| Appears in Collections: | Financial Institutions
|
All items in Faculty Digital Archive are protected by copyright, with all rights reserved.
|
