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The Czech transition banking sector instability: the role of operational cost management

  • Anca Pruteanu-Podpiera
  • Jiří PodpieraEmail author
Article

Abstract

In this article we show—using the estimated cost efficiency of banks—that besides the risk (proxied by the share of non-performing loans), the quality of operational cost management was an equally important determinant of bank failure risk during the decade of banking sector transformation in the Czech Republic.

Keywords

Bank failures Management Cost efficiency Transition economy 

JEL Classification

G2 C1 

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Copyright information

© Springer Science+Business Media, LLC. 2008

Authors and Affiliations

  1. 1.Czech National BankPrague 1Czech Republic

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