Has The Recent Economic Development Influenced Banking Efficiency In The European Union?

Proceedings of the 8th International Conference on Advanced Research in Management, Business and Finance

Year: 2024

DOI:

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Has The Recent Economic Development Influenced Banking Efficiency In The European Union?

Iveta Palečková

 

ABSTRACT:

In the past decade, European banks have encountered numerous challenges and transformations, including changes in regulations, the COVID-19 pandemic, geopolitical conflicts, digitalisation, and growing sustainability demands. These factors are reshaping traditional banking models and potentially affecting bank efficiency. This paper aims to assess the efficiency of selected European banks during the last decade. The study employs the Data Envelopment Analysis (DEA), specifically a two-step DEA, with the second step involving bootstrap analysis to identify efficiency determinants. Both bank-specific and macroeconomic factors will be considered.

keywords: efficiency, banking sector, COVID-19, digitalization