The European banking sector is vital to the European Union (EU) for several reasons, given its central role in the economy, its influence on financial stability, and its contribution to the EU’s integration and development. European banking sectors provide essential credit to businesses, households, and governments, driving economic growth. The contribution attempts to measure and compare technical efficiency scores of 26 European banking systems in 2020 and 2021 by using Data Envelopment Analysis. This paper differs from the so far published literature, as it extends the application of a non-radial model and a super-efficiency model (Tone, 2001, 2002) on the whole banking systems of EU countries, not on individual banks or bank branches. Achieved results also reveal that in the year 2020, among 26 European banking systems under evaluation, 10 banking systems were efficient and the super-efficient was the banking sector of Luxembourg (score of efficiency 1.472). In the year 2021, 14 banking systems were efficient and the super-efficient was the banking sector of Croatia (score of efficiency 2.064). The implications of gained results are then drawn for managerial and regulatory purposes.
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