Estimation of the profit efficiency of the Czech commercial banks

摘要

This paper estimates the profit efficiency of the Czech commercial banks in the period 2001-2010. The paper employs the parametric approach, in particular the Stochastic Frontier Approach, to estimate the profit efficiency of commercial banks in the Czech Republic. Results indicate that the average profit efficiency was increasing during the period 2001-2010. The most efficient bank in the Czech banking industry was PPF bank. Banco Popolare and JT bank reached the average cost efficiency over 90%. In contrast, Dresdner bank had the average cost efficiency score less than 50 %. Generally, the small banks in the market appeared to be more efficient than large banks and medium-sized banks.