The Efficiency Of The Romanian Banking Sector: A DEA Approach

Abstract:

The aim of our paper is to investigate if foreign banks present on the Romanian banking market between 2002 and 2009 have been more efficient than their domestic peers. In order to achieve this, we have used the Data Envelopment Analysis approach, conducting also a series of parametric and non-parametric test in order to establish if foreign and domestic banks are coming from the same population. Our results underline that on the Romanian banking market, foreign banks are truly more efficient than the domestic ones, being able to better use their advantages and obtaining a higher productivity of their inputs.