EVALUATION OF EFFICIENCY IN THE BANKING SYSTEM IN REPUBLIC OF MOLDOVA

• Main Author: Lopotenco Viorica
• Format: Article
• Language: English
• Published: RS Global Sp. z O.O. 2019-04-01
• Series: International Journal of Innovative Technologies in Economy
• Subjects: banking system; banking efficiency; data envelopment analysis; intermediation approach
• Online Access: https://rsglobal.pl/index.php/ijite/article/view/803

The main objective of this study is to evaluate and analyze the efficiency of the banking system of the Republic of Moldova. To this end, efficiency is determined by the econometric approach, which is calculated by the ratio between outputs and inputs and can be described as the distance between inputs and outputs. For this purpose, the input-oriented CRS efficiency analysis was chosen, as well as the slack analysis of performance in DEAFrontier Software. The intermediation approach has been used in the banks' efficiency assessment. This approach regards the bank as an intermediary of financial services and assumes that banks collect funds for deposits with labor and capital and convert them into loans and other assets. The conclusions of this study consist in the fact that through realized analysis the evolution of the efficiency of the Moldovan banking system over the last years, as well as the banks with problems in this chapter, has been highlighted.