Analysis of Features and Possibilities of Bank Functioning Efficiency Based on the Method of Stochastic Frontiers

Abstract

Given paper shows the importance of analyzing the banks performance in the process of their operation and development. The place and the role of researching of stochastic frontiers method for the banks performance assessment have been defined. The features and the possibility of assessing efficiency of banks activity with the usage of the of the stochastic frontiersmethod have been studied. The examples of performance assessment of banks activity in the aspect of the credit extension have been given. The expediency of the consideration of the multiple stochastic frontiers in the assessment of the effectiveness of the banks activities has been proved.