Abstract
The proposed study, by using cluster analysis, presents the unique methodology for determining the level of efficiency of banking systems in terms of crisis. It identifies a cause and relationship of various derivatives when applying the specialized tools to regulate the level of stability of the banking system. The proposed methodology assists in applying the presented studies to track the trends of governmental strategies in regulating the banking market applying the financial and performance indicators. Furthermore, this article presents the innovative methodology when assessing the level of effectiveness of national banking systems in relation to other countries, by carrying out the evaluation of the efficiency of governmental regulations compared with various international banking systems during the period of 2004-2009, and the implementation of the results by received economic interpretations.
Highlights
Evaluating the level of efficiency of the banking system is an extremely important and difficult task
The development of an optimal model for estimating the efficiency of the banking system should be based on the analysis of the most important performance indicators of banks’ activity in general within certain country dynamics and should have a comparative nature
The methodology of the comparative evaluation of the level of effectiveness by the government toward the banking system should consist of the following stages: introduction of performance indicators of the banking activity, standardization of the actual values, use of cluster analysis, and economic interpretation of the achieved results
Summary
Evaluating the level of efficiency of the banking system is an extremely important and difficult task. Existing methods and tools for analyzing the efficiency of the governmental regulation mechanisms of banking systems differ because of the complexity of the application and because of the received results. The development of an optimal model for estimating the efficiency of the banking system should be based on the analysis of the most important performance indicators of banks’ activity in general within certain country dynamics and should have a comparative nature. The methodological basis of this research is scientific and is based on special methods of knowledge, conceptual rules of modern economic theory, experiments and research literature, and with use of government regulations to the monetary operations
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