Banking sector, relative efficiency, DEA, BCC, targets for improvement


Purpose: This paper measures the relative efficiency of commercial banks in the Republic of Croatia in a period of eleven years (2009-2019) by using the leading non-parametric Data Envelopment Analysis (DEA) methodology.

Methodology: In the selection of variables (inputs and outputs) and the DEA model, we have followed Banker et al. (2010).

Results: Based on the results obtained, we have found that the average efficiency of the Croatian banking sector in the observed period is 92%. The highest (96%) and the lowest (90%) mean efficiency score were achieved in 2009 and in 2017, respectively. In addition, we have analyzed several banks that show significant changes in the efficiency scores, and provided targets for improvement of their efficiency.

Conclusion: Croatia is a developing country characterized by a bank-based financial system and this study shows that its banking system is highly efficient, but certain relatively inefficient banks should improve their efficiency. Therefore, our findings provide valuable information for regulators, policymakers and bank management in order to take proper actions to maintain the stability of the key players in the financial system in Croatia.

Author Biographies

Katerina Fotova Čiković, Sveučilište Sjever

Katerina Fotova Čiković, MBA, PhD is a lecturer at the University North in Koprivnica, Republic of Croatia.
She graduated from the Faculty of Economics – Skopje as one of the best students in her
generation in 2009. She studied Marketing as her main subject. During her
undergraduate studies (in 2007/2008), she has received the famous German DAAD
scholarship for studying 2 semesters at the University of Saarland in Germany, and she
spent a whole year in Germany.
In 2011., she got her Master of Science in Monetary Economics, Finance and Banking at
the Faculty of Economics – Skopje. In 2013., she received the full scholarship for the
MBA program for the Cotrugli Business School in the Republic of Croatia, where she
received her MBA as the best student of the generation (among 60 students from 7
countries) with the Dean's award for special recognition.  
Her doctoral dissertation titled: “Effects of mergers and acquisitions (M&A) on bank
performance: the case of the Republic of Macedonia” has been successfully defended
on 09.07.2017. at the Faculty of Economics – Skopje, which enabled her to get the
scientific level of PhD in the Economic sciences.
She has had 10 years of working experience. Namely, she has worked for 4,5 years in 
a commercial bank in the Republic of North Macedonia and 5,5 years at a managerial
position in marketing & sales in the private sector. 
She is the co-author of three published books: „Insurance“, „Economic-financial lexicon“
and „Financial management“ and the author/co-author of 15 scientific papers.
She has participated in numerous national and international seminars, workshops,
conferences, that have an important impact on her professional development as well as her
passion for research.
She works on different projects and enjoys working for her private company (digital
marketing, branding and copywriting).
Her area of scientific interest are: Finance, Banking, Marketing, Digital Marketing and
Branding and Mathematical programing (DEA).

Violeta Cvetkoska, Faculty of Economics - Skopje

Violeta Cvetkoska is an Associate Professor on the courses: Operational research
and Fundamentals of business analytics at “Ss. Cyril and Methodius” University in
Skopje, Faculty of Economics – Skopje. She works at the Faculty of Economics –
Skopje since December 2007, first as a Junior Teaching Assistant, then as
Assistant and Assistant Professor.
She graduated at the Faculty of Economics – Skopje as best student on the
Department of Management in 2007; got her Master’s degree at the Faculty for
Organizational Sciences at the University in Belgrade on the Operations
management program in 2010. Her doctoral dissertation titled: “Methods and
models for multi-criteria decision making in management: Empirical study for
evaluating the efficiency on certain organizational units in the Republic of
Macedonia” was successfully defended on 12.06.2013 at the Faculty of Economics
– Skopje, that enabled her to get the scientific level of PhD in the Economic
She is the author of the published book: Applying multi-criteria decision making
methods in banking: The case of Komercijalna Banka AD Skopje. Also, she has
published various scientific papers in International journals and Proceedings of
International conferences and symposia.
She has participated continuously in national and international trainings,  seminars,
workshops, conferences, symposia and summer schools that have important impact
on her professional development. In addition, special contribution for developing her
academic carrier have her study and scientific visits in Universities in Europe, North
and South America and Asia.
She contributes important roles as member in organizational boards especially for
significant national and international  conferences and summer schools. Also, she is
a reviewer in several international journals and part of Editorial board.
She works on different projects and she is a member of several international
societies and work groups of  EURO.
Her area of scientific interest are: Management science / Operational research,
Decision science, Quantitative analysis for management, Data science, Business
analytics, Mathematical programing (DEA) and Multi-criteria models and methods
for business decision making.




How to Cite

Fotova Čiković, K., & Cvetkoska, V. (2022). HOW EFFICIENT ARE BANKS IN CROATIA?. Ekonomski vjesnik/Econviews - Review of Contemporary Business, Entrepreneurship and Economic Issues, 35(1), 139–150.