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


   Jose L. Gallizo, Financial Economics and Accounting at the University of Lleida, Spain
          Jordi Moreno, Accounting and Finance at the University of Lleida, Spain
        Ioana Iuliana Pop (Grigorescu), “1 Decembrie 1918” Uniersity of Alba Iulia

ABSTRACT: The aim of this study is to analyze the influence that the European integration
process has had over the banking efficiency levels in those countries which have recently
experienced more intensely the European integration process. For this purpose we have
analyzed, using stochastic frontier models (SFA), applied to panel data, bank efficiency levels
of a sample of 240 banks from 12 countries during the period 2000 to 2008. The results
sustain the hypothesis that the European integration process has significantly improved the
efficiency levels in these countries. However, the improvements haven’t appeared simply by
the accession to the EU, but have appeared during the process.
        In order to illustrate the results, we have analyzed the banking system in Romania in
the context of the European integration, a country which because of the delay in the initiation
of the reforms, despite belonging to the EU, it hasn’t still recorded the essential improvements
in banking efficiency associated to this process that the other new members have already
experienced.

Key words: banking efficiency, European integration, stochastic models, banking reform.

JEL Codes: C11, C73, F15, F36, G14, G21