Banking productivity: an overview of the Greek banking system

PurposeThe aim of this paper is to examine the productivity of the Greek banking sector for the time period 2004‐2006.Design/methodology/approachStandard ratio measures of bank financial performance have been used as output measures in a data envelopment analysis model in combination with efficiency ratios’ analysis.FindingsThe Greek banking efficiency remains relatively constant throughout the period under observation, while, on average, big banks perform better than medium and small ones.Research limitations/implicationsProfit and loss accounts as well as balance sheet accounts of each bank are used for examining bank efficiency.Practical implicationsA positive relationship between bank size and performance is observed. More specifically, it is suggested that large total assets gives a bank the ability to achieve higher efficiency levels; thus, a merger of two small banks will probably increase their efficiency and competitiveness in the long term.Originality/valueGreek banks are at a crossroad and faced with the dilemma of expanding their operations internationally or staying at home. The current financial crisis has made this dilemma stronger. The paper's findings suggest that probably the best solution for the Greek banks to overcome their current problem is to merge.</jats:sec

Banking productivity: an overview of the Greek banking system

Purpose – The aim of this paper is to examine the productivity of the Greek banking sector for the time period 2004-2006. Design/methodology/approach – Standard ratio measures of bank financial performance have been used as output measures in a data envelopment analysis model in combination with efficiency ratios’ analysis. Findings – The Greek banking efficiency remains relatively constant throughout the period under observation, while, on average, big banks perform better than medium and small ones. Research limitations/implications – Profit and loss accounts as well as balance sheet accounts of each bank are used for examining bank efficiency. Practical implications – A positive relationship between bank size and performance is observed. More specifically, it is suggested that large total assets gives a bank the ability to achieve higher efficiency levels; thus, a merger of two small banks will probably increase their efficiency and competitiveness in the long term. Originality/value – Greek banks are at a crossroad and faced with the dilemma of expanding their operations internationally or staying at home. The current financial crisis has made this dilemma stronger. The paper's findings suggest that probably the best solution for the Greek banks to overcome their current problem is to merge.Banks, Financial performance, Greece

A new practical methodology for the banking sector to assess corporate sustainability risks with an application in the energy sector

Summarization: The growing recognition of the key role the business community plays in sustainable development has led banking institutions to introduce sustainable criteria into their lending processes in order to reduce the risk associated with the lending decisions. This paper aims to develop a novel approach to assist banking institutions in assessing corporate sustainability risks through published information. It is a practical tool which uses a scoring measurement system in order to evaluate nine categories of corporate sustainability risks using information provided in financial statements and corporate sustainability reports. To test the proposed framework and assess its applicability, an analysis was performed in a sample of reports published by 17 firms which operate in the energy sector. The implementation of the suggested framework was a straightforward process and it forms a good basis for the development of sector specific assessment tools. Also, findings from the analysis indicate that the examined reports do not provide sufficient information about corporate sustainability risks.Presented on: Sustainable Production and Consumptio