Work detail

Privatization of banks in Slovakia and its impact on bank market

Author: Mgr. Branislav Soták
Year: 2008 - summer
Leaders: doc. Ing. Karel Půlpán CSc.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: Slovak
Pages: 85
Awards and prizes:
Link:
Abstract: This diploma thesis deals with the transition and privatization of banks in Slovak Republic. In the beginning, it describes the theoretical background of financial transition. It then copes with the emergence of two-tiered banking and privatization and its implications for the uprise of a Slovak specific corporate governance model, in which banks played a crucial role. The third part investigates problems of the development of the banking sector until late 90s, mostly the vast non-performing loan portfolio. These problems eventually led to a banking crises, that was necessary to be solved via costly restructuring and privatization of banks with the entry of strategic foreign investors, the fourth part describes the process. The last part is dedicated to an empirical analysis of the impact of various ownership forms on the cost efficiency of banks in the sample of Czech and Slovak banks in the period 1996-2005. To estimate the efficiency we use the stochastic frontier approach with the translog specification of the cost function. The results support the hypothesis that privatized banks are more cost efficient than state-owned banks.
Keywords: transition, privatization, banks, cost efficiency, ownership
Downloadable: Diploma Thesis of Koprnická

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