Sharaievskyi D. Models and methods of commercial banks efficiency measurement

The dissertation deals with the efficiency measurement of commercial banks using frontier techniques. The framework includes following steps: identification of the specific efficiency type depending on the aims of the research, identification of the optimal efficiency measurement method, specification of the functional form of the cost or/and profit frontier in case of using parametric methods and identification of banks inputs and outputs. We have tested suggested model and examined cost and profit efficiency of Ukrainian commercial banks using stochastic frontier analysis (SFA). Intermediation approach was used for the identification of bank inputs and outputs and Fourier-flexible function was employed as the functional form for the banks cost and profit function. Besides efficiency measurement the model of commercial bank operation was developed, which allows investigate potential ways to increase banks efficiency and forecast efficiency score in short-term. Also factor-analysis model was developed. Using Tobit regression it allows to identify factors which influence efficiency scores.