BANKING EFFICIENCY AND EUROPEAN INTEGRATION. IMPLICATIONS OF THE BANKING REFORM IN ROMANIA

The aim of this study is to analyze the influence that the European integrationprocess has had over the banking efficiency levels in those countries which have recentlyexperienced more intensely the European integration process. For this purpose we haveanalyzed, using stochastic frontier models (SFA), applied to panel data, bank efficiency levelsof a sample of 240 banks from 12 countries during the period 2000 to 2008. The resultssustain the hypothesis that the European integration process has significantly improved theefficiency levels in these countries. However, the improvements haven‘t appeared simply bythe accession to the EU, but have appeared during the process. In order to illustrate the results, we have analyzed the banking system in Romania inthe context of the European integration, a country which because of the delay in the initiationof the reforms, despite belonging to the EU, it hasn‘t still recorded the essential improvementsin banking efficiency associated to this process that the other new members have alreadyexperienced.