Banking efficiency in the Visegrad Group according to Data Envelopment Analysis with the risk component

The nowadays situation in the banking industry is discussed all around the world. The region of Central Europe and especially countries of the Visegrad Group have to keep up with a lot of changes of the recent history political and economical development, rules of the European Commission or the 2008 crisis. There are many studies which evaluate efficiency of banking industry in the Visegrad Group. Generally, these studies evaluate the efficiency under certainty and for small sample. The problem is missing data or the lack of data which may cause imprecise results. The aim of this paper is to determine the efficiency of the banking industry in Visegrad Group for some of the banks and include into the analysis the risk component. The technical efficiency of banks in the Visegrad Group is estimated for years from 2011 to 2013. The special Slack-based measure type of DEA models with the risk component are used. The development of calculated technical efficiency is analysed in the cross section among the units, in the time and based on size. Also the influence of the risk variable is analysed as well.