Number of ATMs, IT investments, bank profitability and efficiency in Greece

Georgia Giordani, Christos Floros

Research output: Contribution to JournalArticlepeer-review


This paper investigates the effect of automated teller machines (ATMs), information technology (IT) investments and other determinants on the efficiency and profitability of Greek commercial banks. Following the two–step procedure: 1) efficiency is derived via the non–parametric data envelopment analysis (DEA) technique under the variable returns to scale (VRS) assumption; 2) efficiency scores are linked to a series of determinants of bank efficiency using a Tobit regression model. We find that profitability (ROAA and ROAE), ATMs and capitalisation show a negative impact on the efficiency of Greek banks. We also report that banks' size, capitalisation, IT investments and ATMs do not have any effect on the ROAA or the ROAE but they have a positive effect on the fees and commissions. However, we find that ATMs have a negative effect on the net interest income.
Original languageEnglish
Pages (from-to)217-235
Number of pages19
JournalGlobal Business and Economics Review
Issue number2
Early online date17 Mar 2015
Publication statusE-pub ahead of print - 17 Mar 2015


  • banking industry
  • automated teller machines
  • ATMs
  • bank efficieny
  • bank profitability
  • IT investment
  • information technology
  • Greece
  • non-parametric DEA
  • data envelopment analysis
  • capatilism
  • ROAA
  • ROAE
  • fees
  • commissions
  • net interest income


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