Permalink : http://hdl.handle.net/2115/34900

KEYWORDS : Russian Banks;Foreign Banks;Data Envelopment Analysis;Efficiency

In this article, we examine the efficiency of domestic and foreign banks in Russia using Data Envelopment Analysis. The characteristics of this approach enable us to investigate the technical, pure technical, and scale efficiency without specifying assumptions regarding the production function. We also test whether domestic and foreign banks come from the same population. Furthermore, we calculate Malmquist Indices to measure bank productivity changes. Finally, using Tobit regression, we discuss the determinants of bank efficiency. The results indicate that foreign banks tend to be more technically efficient than domestic banks.