Comparative analysis of the efficiency of banks using a model of border costs in selected European countries

The aim of this paper is to analyze the comparative effectiveness of commercial banks operating in the countries of Central and Eastern Europe and the Baltic countries. Selection of a representative group of banks was dictated by the desire to assess the degree of effectiveness in the two groups of countries that started democratic and economic transformation almost simultaneously, but opted for various models of development of the banking sector. The efficiency of banks in the studied groups of countries in 2005—2011 differed significantly, and has demonstrated an analysis using the stochastic frontier model costs.