Work detail

Performance and efficiency of the banking sector in the CR

Author: Mgr. Jan Valenta
Year: 2004 - summer
Leaders: † prof. Ing. Michal Mejstřík CSc.
Work type: Finance and Banking
Language: Czech
Pages: 90
Awards and prizes:
Abstract: This diploma thesis investigates the relationship between bank performance and market structure. In the beginning the development of the banking sector in the Czech Republic since the nineties until now is described. After short introduction to the theory of a firm I present a detailed analysis of the market structure and its influence on the performance of companies at the market. X-inefficiency and scale inefficiency are estimated with cost function for individual banks in 1995-2002. In the second part of the thesis I test the market-power and efficient structure hypothesis. This work finds support of market share as the crucial factor explaining the profit-structure relationship. Although the results of the tests performed do not support any of the hypotheses without exceptions, relative market power hypothesis proves the greatest measure of reliability.




Patria Finance
Česká Spořitelna