Browsing by Subject "tehokkuus"

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  • Koivuniemi, Emilia (2006)
    Bank of Finland. Financial market report 4
    The European Commission wants to support market participants' efforts to ensure increased efficiency of securities clearing and settlement. The Commission, together with market participants, have thus prepared a Code of Conduct, which is already being implemented.
  • Anatolyev, Stanislav (2005)
    BOFIT Discussion Papers 9/2005
    Published in Research in International Business and Finance, Vol. 22, 2008: 56-67
    We study three aspects of the Russian stock market - factors influencing stock returns, integration of the stock market with world .financial markets, and market efficiency - from 1995 to present, putting emphasis on how these evolved over time.We .find many highly unstable relationships, and indeed, greater instability than that generated by financial crises alone.While most computed statistics exhibit constant ups and downs, there are recently clear tendencies in the development of the Russian stock market: a sharp rise in explainability of returns, an increased role of international financial markets, and a decrease in the profitability of trading. Key words: Russia, transition, stock returns, integration, efficiency. JEL codes: C22, F36, G14, G15
  • Hasan, Iftekhar; Malkamäki, Markku (2000)
    Suomen Pankin keskustelualoitteita; Bank of Finland. Discussion papers 20/2000
    This paper investigates the existence and extent of economies of scale and scope among stock exchanges.Evidence from 38 exchanges in 32 countries and 4 continents around the world for the years 1989-1998 indicates the existence of significant economies of scale and scope.The degree of such economies however differs by size of exchange and region.The largest stock exchanges show an increasing trend of cost effectiveness.Exchanges in North America and Europe report substantially larger economies of scale than those in the Asia-Pacific regions. Keywords: stock exchanges, mergers, regional alliances, economies of scale
  • Karas, Alexei; Schoors, Koen; Weill, Laurent (2008)
    BOFIT Discussion Papers 3/2008
    Published in Economics of Transition Vol 18, Issue 1 (January 2010), pp. 123-141
    We study whether bank efficiency is related to bank ownership in Russia. We find that foreign banks are more efficient than domestic private banks and - surprisingly - that domes-tic private banks are not more efficient than domestic public banks. These results are not driven by the choice of production process, the bank's environment, management's risk preferences. the bank's activity mix or size, or the econometric approach. The evidence in fnicl suggests that domestic public banks arc more efficient than domestic private banks and that the efficiency gap between these two ownership types did not narrow after the introduction of deposit insurance in 2004. This may be due to increased switching costs or to the moral hazard effects of deposit insurance. The policy conclusion is that the efficiency of the Russian banking system may benefit more from increased levels of competition and greater access of foreign banks than from bank privatization. JEL classification: G21; P30; P34; P52 Keywords: Bank efficiency; state ownership; foreign ownership; Russia
  • Malkamäki, Markku (1999)
    Suomen Pankin keskustelualoitteita; Bank of Finland. Discussion papers 4/1999
    This is the first paper that examines economies of scale in stock exchanges.The data employed in the study include cost and output statistics for 37 stock exchanges in four continents around the world for the year 1997.I estimate two traditional cost functions and find that ray (overall) scale economies exist only in the very large stock exchanges but that there are significant scale economies with respect to one of the outputs, ie the processing of trades.On the other hand, there are not equally clear scale advantages related to activities involving company-specific information.There are thus opposing forces, some tending to increase standardization and scale and others favouring the continuization of more localized facilities.The outcome of increasing competition may be not be the amalgamation of exchanges but instead the centralization of certain functions, eg the trading function, and continued realization of others on a decentralized basis.There is nonetheless an obvious incentive for closer and deeper cooperation between European stock exchanges.
  • Vanhala, Juuso; Virén, Matti (2018)
    Bank of Finland. Bulletin 3/2018
    Unprofitable ‘zombie’ firms have been on the rise in Finland, both proportionately and in absolute terms, since the beginning of the 2000s. At most, they have accounted for approximately 10% of all labour and capital allocated within the corporate sector. Zombie firms can survive for years, but in the long term they must either revitalise and become profitable or exit the market. Keeping unprofitable firms on life support for extended periods of time can distort the efficiency of markets and is associated with a variety of risks. For one, the share of capital and labour allotted to zombie firms prevents these resources from being allocated more efficiently elsewhere, weakening operating conditions for profitable companies. This opportunity cost lowers productivity and weakens growth opportunities for the entire economy. Furthermore, zombie firms are generally highly leveraged and raise the risk of credit defaults and financial market disruptions. Identifying zombie firms is not entirely straightforward, however, as the classification is in itself heterogeneous and includes growing companies with weak current profitability who may, in the long term, eventually contribute to economic growth.
  • Korhonen, Kari (2004)
    EURO & TALOUS 4
    Euroopan unionissa panostetaan siihen, että arvopaperikauppojen selvitys- ja toimitusprosessit toimisivat tulevaisuudessa nykyistä kitkattomammin ja että ulkomaisten arvopapereiden hankintakustannukset pienenisivät.Tämä edellyttää suuria rakennemuutoksia näihin prosesseihin ja sääntelyn modernisoimista. Miksi arvopaperikaupan selvitysja toimitusprosessit ovat tärkeitä?
  • Peresetsky, Anatoly (2010)
    BOFIT Discussion Papers 1/2010
    Published in Macroeconomics and Finance in Emerging Market Economies, Volume 6, Issue 1, 2013: 88-113 as "Cost efficiency of Kazakhstan and Russian banks: results from competing panel data models". Other author: Subal Kumbhakar
    The Kazakhstan banking system is increasingly viewed as more advanced than the Russian system. Kazakhstan adopted the International Accounting System (IAS) in 2003 and the Basel II norms in 2005, while Russia has yet to fully adopt either IAS or Basel II. In this paper, bank data for 2002-2006 are used to estimate models of bank cost efficiency. In contrast to most previous papers, no significance difference is found for the average cost efficiency scores of banks for the two countries during 2002-2006. How banks are ranked for efficiency depends upon the chosen model (input and output sets). An interesting insight is the finding that most banks in both countries are below optimal size.
  • Fang, Yiwei; Hasan, Iftekhar; Marton, Katherin (2011)
    Bank of Finland Research Discussion Papers 5/2011
    Published in Economics of Transition, Volume 19, Issue 3, July 2011: 495-520
    This study examines the cost and profit efficiency of banking sectors in six transition countries of South-Eastern Europe over the period 1998 2008. Using the stochastic frontier approach, our analysis reveals that the average cost efficiency of SEE banks is 68.59% and the average profit efficiency is 53.87%. The second-stage regressions on the determinants of bank efficiency further show that foreign banks are associated with higher profit efficiency but moderately lower cost efficiency. Government banks are associated with lower profit efficiency. The efficiency gap between foreign banks, domestic private banks and government banks, however, has narrowed over time. We also find that the degree of individual banks competitiveness has a positive association with both cost and profit efficiency. Finally, institutional development, proxied by progress in banking reforms, privatization and corporate governance restructuring, also has a positive impact on bank efficiency.
  • Mamonov, Mikhail; Vernikov, Andrei (2015)
    BOFIT Discussion Papers 22/2015
    Published in Economic Systems, Volume 41, Issue 2, June 2017, Pages 305–319 as Bank ownership and cost efficiency: New empirical evidence from Russia.
    This paper considers the comparative efficiency of public, private, and foreign banks in Rus-sia, a transition economy with several unusual features. We perform stochastic frontier anal-ysis (SFA) of Russian bank-level quarterly data over the period 2005–2013. The method of computation of comparative cost efficiency is amended to control for the effect of revalua-tion of foreign currency items in bank balance sheets. Public banks are split into core and other state-controlled banks. Employing the generalized method of moments, we estimate a set of distance functions that measure the observed differences in SFA scores of banks and bank clusters (heterogeneity in risk preference and asset structure) to explain changes in bank efficiency rankings. Our results for comparative Russian bank efficiency show higher efficiency scores, less volatility, and narrower spreads between the scores of different bank types than in previous studies. Foreign banks appear to be the least cost-efficient market participants, while core state banks on average are nearly as efficient as private domestic banks. We suggest that foreign banks gain cost-efficiency when they increase their loans-to-assets ratios above the sample median level. Core state banks, conversely, lead in terms of cost efficiency when their loans-to-assets ratio falls below the sample median level. The presented approach is potentially applicable to analysis of bank efficiency in other dollarized emerging markets.
  • Berger, Allen N.; Hasan, Iftekhar; Zhou, Mingming (2007)
    Bank of Finland Research Discussion Papers 16/2007
    Published in Journal of Banking & Finance, Volume 33, Issue 1, January 2009, Pages 113-130
    China is reforming its banking system, partially privatizing and permitting minority foreign ownership of three of the dominant 'big four' state-owned banks. This paper seeks to help predict the effects of this change by analysing the efficiency of virtually all Chinese banks in the years 1994-2003. Our findings suggest the big four banks are by far the least efficient and foreign banks the most efficient while minority foreign ownership is associated with significantly improved efficiency. We present corroborating robustness checks and offer several credible mechanisms through which minority foreign owners can increase Chinese bank efficiency. These findings suggest that minority foreign ownership of the big four is likely to significantly improve performance. Keywords: China, foreign banks, efficiency, foreign ownership JEL classification numbers: G21, G28, G34, F23
  • Belousova, Veronika; Karminsky, Alexander; Kozyr, Ilya (2018)
    BOFIT Discussion Papers 5/2018
    The paper examines how the type of ownership affects the profit efficiency of Russian banks. Using bank-quarter data for selected banks in the period 2004–2015, we combine stochastic frontier anal-ysis (SFA) methodology with an intermediary approach to assess profit efficiency. Our key findings show that foreign-owned banks are the most efficient, followed by state-owned banks and private domestic banks. We also find that the profit efficiency of foreign-owned banks was higher than that of other banks during the economically stable periods of 2004Q1 to 2008Q2 and 2014Q1 to 2015Q3, and that state-owned banks were more efficient than others in the period of financial turmoil from 2008Q3 to 2013Q4 due to state support. These results are robust when we consider these banks in terms of branch network diversity, risk preferences, and specialization.
  • Bonin, John P.; Hasan, Iftekhar; Wachtel, Paul (2004)
    BOFIT Discussion Papers 7/2004
    Published in Journal of Banking & Finance vol. 29, no 1 (2005), pp. 31-53
    Using data from 1996 to 2000, we investigate the effects of ownership, especially by a strategic foreign owner, on bank efficiency for eleven transition countries in an unbalanced panel consisting of 225 banks and 856 observations.Applying stochastic frontier estimation procedures, we compute profit and cost efficiency scores taking account of both time and country effects directly.In second-stage regressions, we take these efficiency measures along with return on assets as dependent variables with dummy variables for ownership type, a variable controlling for bank size, and dummy variables for year and country effects as explanatory variables.Methodologically, our results demonstrate the importance of including fixed effects, especially country effects, and also suggest a preference for efficiency measures over financial measures of bank performance in empirical work on transition countries. With respect to the impact of ownership, we conclude that privatization by itself is not sufficient to increase bank efficiency as government-owned banks are not appreciably less efficient than domestic private banks.Our results do support the hypothesis that foreign ownership leads to more efficient banks in transition countries.We find that foreign-owned banks are more cost-efficient than other banks and that they also provide better service, in particular if they have a strategic foreign owner. Moreover, the participation of international institutional investors is shown to have a considerable additional positive impact on profit efficiency, which is consistent with the notion that these investors facilitate the transfer of technology and know how to newly privatized banks.In addition, we find that the remaining government-owned banks are less efficient in providing services, which is consistent with the hypothesis that the better banks were privatized first in transition countries.Finally, efficiency declines with bank size, which could call into question government-orchestrated bank consolidation strategies.We conjecture that the presence of many small and efficient foreign greenfield operations in these transition countries may be responsible for this result. JEL Classifications: P30, P34, P52.
  • Paunonen, Heli (2004)
    Bank of Finland. Financial market report 1
    The banks in Finland have set their sights at achieving improved efficiency in the proc-essing of payments. There are also pressures to improve the operations of the securities clearing and settlement systems.
  • Hasan, Iftekhar; Mester, Loretta J. (2008)
    Bank of Finland Research Discussion Papers 29/2008
    Over the last decade, the legal and institutional frameworks governing central banks and financial market regulatory authorities throughout the world have undergone significant changes. This has created new interest in better understanding the roles played by organizational structures, accountability and transparency in increasing the efficiency and effectiveness of central banks in achieving their objectives and ultimately yielding better economic outcomes. Although much has been written pointing out the potential role institutional form can play in central bank performance, little empirical work has been done to investigate the hypothesis that institutional form is related to performance. This paper attempts to help fill this void
  • Jones, Derek C.; Kalmi, Panu; Mygind, Niels (2003)
    BOFIT Discussion Papers 7/2003
    Published in Post-Communist Economies vol 17, no 1 (2005), pp. 83-108
    In this paper we use rich panel data for a representative sample of Estonian enterprises to analyse diverse issues related to the determinants of ownership structures and ownership changes after privatisation.A key focus is to determine whether ownership changes are related to economic efficiency.While employee owned firms are found to be much more prone than other firms to switch ownership categories, often "employee owned" firms remain "insider-owned" as ownership passes from current employees to managers and former employees.Logit analyses of the determinants of ownership structures and ownership changes provides mixed support for several hypotheses.As predicted: (i) wealth and resource constraints play a crucial role in the determination of ownership, with foreigners buying firms with the highest equity levels and insiders buying firms with the lowest equity valuations; (ii) risk aversion explains subsequent ownership changes, especially away from employee ownership; (iii) allocation of ownership depends on the pre-privatisation origin and location of the firm, and these factors also influence subsequent ownership changes.Finally we compare our findings with those achieved by using more conventional approaches to analyze efficiency that use very similar data.Reassuringly the evidence presented in this paper is consistent with the view that efficiency considerations drive ownership changes (while earlier analysis for Estonia and for many other transition economies has identified the impact of ownership on economic performance.)However, the findings in this paper also establish that there are important influences besides economic efficiency that affect enterprise ownership and ownership changes.JEL-numbers: G3, J5, P2, P3 Key words: Privatisation, ownership change, employee ownership, transition economies, Estonia
  • Hasan, Iftekhar; Lozano-Vivas, Ana; Pastor, Jesús (2000)
    Suomen Pankin keskustelualoitteita 24/2000
    Recent cross-country comparisons of bank efficiency have been based on pooled estimates of banks across countries and have typically assumed a common frontier and that differences in performance among banks are primarily due to disparities in certain country-specific aspects of banking technology.This paper argues that such comparisons of performance must take into account cross-country differences in economic conditions, demographics, and regulatory structures (environmental factors).Using a sample of banks from ten leading European countries, this paper provides detailed evaluations of the efficiency of banks in each country that operate both within and outside their own environments.The results indicate that adverse (advantageous) environmental conditions are a positive (negative) factor for the home banking industry and that technical efficiency is a significant deterrence to foreign competition.
  • Hasan, Iftekhar; Marton, Katherin (2000)
    BOFIT Discussion Papers 7/2000
    Published in Journal of Banking & Finance vol 27, no 12 (2003), pp. 2249-2271
    The paper analyzes the experiences and developments of Hungarian banking sector during the transitional process from a centralized economy to a market-oriented system.The paper identifies that early reorganization initiatives, flexible approaches to privatization, and liberal policies towards foreign banks involvement with the domestic institutions helped to build a relatively strong and increasingly efficient banking system.Banks with higher foreign bank ownership involvement were associated with lower inefficiency.
  • Hasan, Iftekhar; Wang, Haizhi; Zhou, Mingming (2008)
    BOFIT Discussion Papers 28/2008
    Published in Managerial Finance, Vol. 35 Issue: 2, 2009, pp.107-127
    The pace of transition in China over the last two decades has led to great variation across the country in terms of institutional and financial development. In this paper, using a panel of Chinese provinces during the period 1993-2006, we empirically investigate the determinants of the efficiency of the banking sector from an institutional perspective. The most important institutional developments in China are the emergence and gradual dominance of the market economy, financial deepening, the growth of a private sector, the establishment of secure property rights, and rule of law. We find that institutional variables play an important role in affecting banking efficiencies, and that banks tend to operate more efficiently in those regions with a greater private sector presence and more property rights awareness, while the role of financial deepening and rule of law is less straightforward. JEL classifications: G21, O43 Keywords: Institutional development, Bank efficiency, Chinese banks
  • Pessarossi, Pierre; Weill, Laurent (2013)
    BOFIT Discussion Papers 28/2013
    Published in Revue économique 3/2015 (Vol. 66) , p. 505-520 as Les exigences de fonds propres influencent-elles l’efficience des banques? Leçons d'une expérience naturelle en Chine. http://www.cairn.info/revue-economique-2015-3-page-505.htm
    This paper contributes to the debate on the effect of capital requirements on bank effieciency. We study the relation between capital ratio and bank efficiency for Chinese banks over the period 2004?2009, taking advantage of the profound regulatory changes in capital requirements that occurred during this period to measure the exogenous impact of an in-crease in the capital ratio on banks' cost efficiency. We find that such an increase has a positive effect on cost efficiency, the size of which depends to an extent on the bank's ownership type. Our results therefore suggest that capital requirements can improve bank efficiency. JEL Codes: G21, G28 Keywords: bank, capital requirements, efficiency, China