Evidence from Russiaare Private Banks More Efficient than Public Banks?
University College Roosevelt/Utrecht University; Centre for Russian International Socio-Political and Economic Studies (CERISE)
Koen J. L. Schoors
Ghent University - Centre for Russian International Socio-Political and Economic Studies (CERISE); Ghent University - Department of General Economics
University of Strasbourg - LaRGE Research Center (Laboratoire de Recherche en Gestion et Economie)
Economics of Transition, Vol. 18, Issue 1, pp. 209-244, January 2010
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 domestic 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, the econometric approach, or the introduction 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.
Number of Pages in PDF File: 36Accepted Paper Series
Date posted: December 1, 2009
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 1.204 seconds