Acta Universitatis Danubius. Œconomica, Vol. 11, No. 1
Abstract
Main objective of this study is to analyse banking efficiency and productivity considering
evidences from Western Balkan countries in pre-crisis, during and the recovery period. Referring to
the historic background and the transformations suffered, the WB countries have developed bank
based financial structure so the soundness of the banking sector is significantly important for the
stability and progress of their economies on the long run. The problems faced by the last recession,
the deteriorated macroeconomic indicators and weak, inefficient banking sector translated in slow
recovery rates, encouraged this study. Prior studies have been mainly focused in causes and effects of
crisis in different sectors of economies while this paper presents relations and dependencies between
the macroeconomic and bank specific efficiency determinants. The methodology used is the
comparison between countries and as method the financial ratio analysis, intending the presentation of
trends and evaluation of changes in efficiency, profitability and performance indicators during 2000-
2007 comparing with 2008-2013. Results that the banking sector profitability indicators follow the
same negative trend with the economic growth rates and the recovery rates are lower than the
forecasted. The results can be used by performance monitors to better identify vulnerabilities and
examine uncertainties/risks.
References
Allen, F. & Gale, D. (2000 b). Financial Contagion. Journal of Political Economy, 108, p. 1-33.
Borio, C. & Derhman, M. (2012). Assessing the risk of banking crisis – revisited. BIS quarterly review,
March, pp. 29-46.
Bank of Albania, Financial Stability Report 2014H1, (FSB, 2014H1), p. 75. Bank of Albania, Published by:
Bank of Albania, 2014, Retrieved from:
http://www.bankofalbania.org/web/Financial_Stability_Report_2014_H1_7138_2.php, Accessed on
November 15, 2014 & January 25, 2015.
Claudio, B. (2014). The financial cycles and the macroeconomics: what have we learned and what are the
policy implications? pp. 12-13. E-book: Financial Cycles and the Real Economy, Lessons for CESEE
Countries, ©Oesterreichische National bank 2014, Published by Edward Elgar Publishing Limited, The
Lypiatts, 15 Lansdown Road, Cheltenham Glos GL 50 2JA UK or as second address: Edward Elgar
Publishing Inc., William Prat House, 9 Dewey Court, Northampton, Massachusetts 01060 USA. Retrieved
from: http://books.google.al/books. Accessed on November 15, 2014; 15:34.
David, C. W. & Paul, W. W. (February 2000). Why do Banks Disappear? The Determinants of U.S. Bank
Failures and Acquisitions, p. 20. Working Paper Series, Published: Review of Economics and Statistics,
February 2000, pp. 127-38. Federal Reserve Bank of St. Louis, Research Division 411, and Locust Street,
St.Louis, MO 63102. Retrieved from: http://research.stlouisfed.org/wp/1995/95-013.pdf, Accessed on
December 06, 2014; 22:32
Drehmann, M., Borio, C., & Tsatsaronis, K., (2012). Characterizing the financial cycle: Don‘t lose sight of
the medium term!, BIS Working Papers, No 380, June 2012
Drehmann, M. & Juselius, M. (2012). Measuring liquidity constraints in the economy; the debt service ratio
and financial crisis‘. BIS quarterly review, September, pp. 21-35.
Frederic S. M. & Stanley ,G. E. (2011). Financial Markets and Institutions, Seventh Edition, Chapter 8, p.
219, published by Pearson Education Series in Finance in March 01, 2011. Retrieved from:
http://www.pfsprogram.org/. Accessed on November 2014.
Monaghan, A. (2014, December 04). ECB cuts Euro zone growth forecast and fails to deliver QE for
Christmas. The Guardian. Thursday 4, December 2014 19:44 GMT,
Retrievedfrom:http://www.theguardian.com/business/2014/dec/04/ecb-cuts-eurozone-growth-forecastsquantitative-
easing. Accessed on December 06, 2014 18:44.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Albania, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p. 11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Bosnia - Herzegovina, Financial
Sector Benchmarking System (FSBS) Report, November 2013 p.11, 13, 16. United State of America
International Development (USAID) from the American People. Retrieved from:
http://www.pfsprogram.org/, Accessed on November 2014.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Kosovo, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p.11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Macedonia, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p. 11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Montenegro, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p. 11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Serbia, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p.11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014.
Thorsten, B., Asli, D. K., & Ross L, (2003).Bank Concentration and Crisis, NBER Working Paper No.
9921, p. 21, 22. Available on: http://www.nber.org/papers/w9921.pdf, Accessed on October 19, 2014;
23:45.
[WESP]. W. E. (2013). World Economic Situation and Prospects. New York : United Nations publications
Sales no.E.13.II.C.2 Global Outlook, p. 3, Retrieved
from:http://www.un.org/en/development/desa/policy/wesp/wesp_current/2014Chap1_en.pdf. Accessed on
November 15, 2014
[WESP]. W. E. (2014). World Economic Situation and Prospects. New York: United Nations publication,
Sales No.E.14.II.C.2, Global Outlook p. 27. Retrieved from:
http://www.un.org/en/development/desa/policy/wesp/wesp_current/2014Chap1_en.pdf; Accessed on
November 15, 2014.
[WESP]. W. E. (2014). World Economic Situation and Prospect 2014. New York: United Nations
publication, Sales No.E.14.II.C.2 Global Outlook p. 28.Retrieved from:
http://www.un.org/en/development/desa/policy/wesp/wesp_current/2014Chap1_en.pdf; Accessed on
November 15, 2014; 13:42.
International Monetary Fund [IMF], I. M. (n.d.), Web Site: IMF Data, Financial Soundness Indicators
[FSIs], Retrieved from: http://www.imf.org/external/data.htm, Accessed on November 15, 2014.
International Financial Statistics (IFS), Web Site: (IMF) Data and Statistics. Retrieved from:
http://www.imf.org/external/data.htm/ and http://data.imf.org/?sk=9F855EAE-C765-405E-9C9AA9DC2C1FEE47.
Accessed on November 15, 2014.
IMF, G. F. (October 2009 ). Global Financial Stability Report. Washington, USA: International Monetary
Fund. Retrieved from: http://data.worldbank.org/indicator/FM.AST.CGOV.ZG.M3/countries. Accessed on
November 15, 2014.
IMF, G. F. (April 2014). Global Financial Stability Report. Washington, USA: International Monetary
Fund. Retrieved from: http://data.worldbank.org/indicator/FM.AST.CGOV.ZG.M3/countries. Accessed on
November 15, 2014.
European Statistical System [Euro stat], E. S.(n.d.), Web site: Print-Europa, Eurostat – Tables, Graphs and
Maps Interference [TGM]Retrieved from:
http://ec.europa.eu/tgm/printTable.do?tab=table&plugin=18language=en&pcode=tec00115&printPreiew=tr
ue; Accessed on November 15, 2014.
Partners for Financial Stability (PFS). Web site: Partners for Financial Stability. Retrieved from:
http://www.pfsprogram.org/
World Bank, [IBRD-IDA]. W. B. (n.d.). Web Site: Indicators – The World Bank, The World Bank – IBRDIDA,
Retrieved from: http://data.worldbank.org/indicator/FM.AST.CGOV.ZG.M3/countries, Accessed on
November 15, 2014.
Borio, C. & Derhman, M. (2012). Assessing the risk of banking crisis – revisited. BIS quarterly review,
March, pp. 29-46.
Bank of Albania, Financial Stability Report 2014H1, (FSB, 2014H1), p. 75. Bank of Albania, Published by:
Bank of Albania, 2014, Retrieved from:
http://www.bankofalbania.org/web/Financial_Stability_Report_2014_H1_7138_2.php, Accessed on
November 15, 2014 & January 25, 2015.
Claudio, B. (2014). The financial cycles and the macroeconomics: what have we learned and what are the
policy implications? pp. 12-13. E-book: Financial Cycles and the Real Economy, Lessons for CESEE
Countries, ©Oesterreichische National bank 2014, Published by Edward Elgar Publishing Limited, The
Lypiatts, 15 Lansdown Road, Cheltenham Glos GL 50 2JA UK or as second address: Edward Elgar
Publishing Inc., William Prat House, 9 Dewey Court, Northampton, Massachusetts 01060 USA. Retrieved
from: http://books.google.al/books. Accessed on November 15, 2014; 15:34.
David, C. W. & Paul, W. W. (February 2000). Why do Banks Disappear? The Determinants of U.S. Bank
Failures and Acquisitions, p. 20. Working Paper Series, Published: Review of Economics and Statistics,
February 2000, pp. 127-38. Federal Reserve Bank of St. Louis, Research Division 411, and Locust Street,
St.Louis, MO 63102. Retrieved from: http://research.stlouisfed.org/wp/1995/95-013.pdf, Accessed on
December 06, 2014; 22:32
Drehmann, M., Borio, C., & Tsatsaronis, K., (2012). Characterizing the financial cycle: Don‘t lose sight of
the medium term!, BIS Working Papers, No 380, June 2012
Drehmann, M. & Juselius, M. (2012). Measuring liquidity constraints in the economy; the debt service ratio
and financial crisis‘. BIS quarterly review, September, pp. 21-35.
Frederic S. M. & Stanley ,G. E. (2011). Financial Markets and Institutions, Seventh Edition, Chapter 8, p.
219, published by Pearson Education Series in Finance in March 01, 2011. Retrieved from:
http://www.pfsprogram.org/. Accessed on November 2014.
Monaghan, A. (2014, December 04). ECB cuts Euro zone growth forecast and fails to deliver QE for
Christmas. The Guardian. Thursday 4, December 2014 19:44 GMT,
Retrievedfrom:http://www.theguardian.com/business/2014/dec/04/ecb-cuts-eurozone-growth-forecastsquantitative-
easing. Accessed on December 06, 2014 18:44.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Albania, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p. 11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Bosnia - Herzegovina, Financial
Sector Benchmarking System (FSBS) Report, November 2013 p.11, 13, 16. United State of America
International Development (USAID) from the American People. Retrieved from:
http://www.pfsprogram.org/, Accessed on November 2014.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Kosovo, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p.11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Macedonia, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p. 11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Montenegro, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p. 11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014.
Partners for Financial Stability (PFS) Deloitte Consulting, L. f. (2013). Serbia, Financial Sector
Benchmarking System (FSBS) Report, November 2013 p.11, 13, 16. United State of America International
Development (USAID) from the American People. Retrieved from: http://www.pfsprogram.org/, Accessed
on November 2014.
Thorsten, B., Asli, D. K., & Ross L, (2003).Bank Concentration and Crisis, NBER Working Paper No.
9921, p. 21, 22. Available on: http://www.nber.org/papers/w9921.pdf, Accessed on October 19, 2014;
23:45.
[WESP]. W. E. (2013). World Economic Situation and Prospects. New York : United Nations publications
Sales no.E.13.II.C.2 Global Outlook, p. 3, Retrieved
from:http://www.un.org/en/development/desa/policy/wesp/wesp_current/2014Chap1_en.pdf. Accessed on
November 15, 2014
[WESP]. W. E. (2014). World Economic Situation and Prospects. New York: United Nations publication,
Sales No.E.14.II.C.2, Global Outlook p. 27. Retrieved from:
http://www.un.org/en/development/desa/policy/wesp/wesp_current/2014Chap1_en.pdf; Accessed on
November 15, 2014.
[WESP]. W. E. (2014). World Economic Situation and Prospect 2014. New York: United Nations
publication, Sales No.E.14.II.C.2 Global Outlook p. 28.Retrieved from:
http://www.un.org/en/development/desa/policy/wesp/wesp_current/2014Chap1_en.pdf; Accessed on
November 15, 2014; 13:42.
International Monetary Fund [IMF], I. M. (n.d.), Web Site: IMF Data, Financial Soundness Indicators
[FSIs], Retrieved from: http://www.imf.org/external/data.htm, Accessed on November 15, 2014.
International Financial Statistics (IFS), Web Site: (IMF) Data and Statistics. Retrieved from:
http://www.imf.org/external/data.htm/ and http://data.imf.org/?sk=9F855EAE-C765-405E-9C9AA9DC2C1FEE47.
Accessed on November 15, 2014.
IMF, G. F. (October 2009 ). Global Financial Stability Report. Washington, USA: International Monetary
Fund. Retrieved from: http://data.worldbank.org/indicator/FM.AST.CGOV.ZG.M3/countries. Accessed on
November 15, 2014.
IMF, G. F. (April 2014). Global Financial Stability Report. Washington, USA: International Monetary
Fund. Retrieved from: http://data.worldbank.org/indicator/FM.AST.CGOV.ZG.M3/countries. Accessed on
November 15, 2014.
European Statistical System [Euro stat], E. S.(n.d.), Web site: Print-Europa, Eurostat – Tables, Graphs and
Maps Interference [TGM]Retrieved from:
http://ec.europa.eu/tgm/printTable.do?tab=table&plugin=18language=en&pcode=tec00115&printPreiew=tr
ue; Accessed on November 15, 2014.
Partners for Financial Stability (PFS). Web site: Partners for Financial Stability. Retrieved from:
http://www.pfsprogram.org/
World Bank, [IBRD-IDA]. W. B. (n.d.). Web Site: Indicators – The World Bank, The World Bank – IBRDIDA,
Retrieved from: http://data.worldbank.org/indicator/FM.AST.CGOV.ZG.M3/countries, Accessed on
November 15, 2014.
Downloads
Published
2021-05-28
How to Cite
Collective Authors. (2021). Acta Universitatis Danubius. Œconomica, Vol. 11, No. 1: Array. Acta Universitatis Danubius. Œconomica, 11(1). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1091
Issue
Section
Articles
License
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.
