Management Theory and Studies for Rural Business and Infrastructure Development, Volume 35, Number 2

A non-parametric analysis of the credit unijon performance in Lithuania

Tomas Baležentis, Asta Kantaravičienė, Vytautas Kėdaitis

Abstract

Benchmarking of the financial institutions is important for various groups of stakeholders, namely these institutions themselves, their customers, and public agencies. The Lithuanian credit unions, though, have not been analysed by the means of data envelopment analysis (DEA) or any other frontier technique so far. This paper, therefore, employed the DEA to estimate the efficiency of the Lithuanian credit unions. The aim of the research was to identify the prospective development trends of the Lithuanian credit unions in terms of their productive efficiency. The DEA was implemented to estimate the efficiency of the credit unions. The scale elasticity was analysed in the spirit of the neo-classical theory of the productive technology. Finally, some determinants of efficiency were discussed. The credit union data covering years 2008–2011 were used for the research. Specifically, the analysis focused on credit unions associated with the Lithuanian Central Credit Union.

JEL codes: C140, C610, G210.

Keyword(s): credit unions, efficiency, scale elasticity, data envelopment analysis


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.