LAUSR

ABSTRACT The paper examines how the type of ownership affects the efficiency of Russian banks. Using bank-quarter data for selected banks in the period 2004–2015, we combine stochastic frontier analysis (SFA) methodology with an intermediary approach to assess both profit and cost efficiency scores. Our key findings show that foreign-owned banks are the most profit efficient, and state-owned banks efficiently manage costs compared to other banks. These results are robust when we consider these banks in terms of risk preferences and specialization.