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Annals of Operations Research

, Volume 266, Issue 1–2, pp 531–549 | Cite as

The effects of sector reforms on the productivity of Greek banks: a step-by-step analysis of the pre-Euro era

  • Panagiotis Tziogkidis
  • Kent Matthews
  • Dionisis Philippas
Analytical Models for Financial Modeling and Risk Management

Abstract

The paper analyses the effects on the productivity of Greek commercial banks of sector regulatory reforms in the pre-Euro era, using the Global Malmquist Index. In a bootstrap Data Envelopment Analysis framework, we propose an alternative to smoothing that utilises the Pearson system random number generator, offering greater flexibility in the choice of the fitting distribution. In the context of a step-by-step approach, we demonstrate the contribution of deregulatory commercial freedoms to greater productivity and the negative effect of prudential controls. Our findings offer insights into the current state of the Greek banking sector, suggesting that the imposition of additional prudential controls may have a detrimental impact on the productivity of Greek banks, given the adverse business conditions.

Keywords

Bank productivity Bank regulation Global Malmquist Index Moments bootstrap DEA 

JEL Classification

C14 G21 G28 

Supplementary material

10479_2016_2381_MOESM1_ESM.pdf (1 mb)
Supplementary material 1 (pdf 1068 KB)

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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.Plymouth Business SchoolPlymouthUK
  2. 2.Cardiff Business SchoolCardiffUK
  3. 3.ESSCA School of ManagementBoulogne, ParisFrance

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