Explaining Efficiency Differences Among Large German and Austrian Banks

 
Author/Editor: Hauner, David
 
Publication Date: August 01, 2004
 
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Summary: Cost-efficiency, scale efficiency, and productivity change are estimated by data envelopment analysis; and cost-efficiency is regressed on explanatory variables. No evidence is found for average productivity responding to deregulation over the period studied. State-owned banks are found to be more cost-efficient (likely owing to cheaper funds) and cooperative banks to be about as cost-efficient as private banks. Increasing economies of scale but decreasing economies of scope provide rationale for M&As among banks with similar product portfolios. Interbank and capital market funding is found to be more cost-efficient than deposits when the cost of retail networks is controlled for.
 
Series: Working Paper No. 04/140
Subject(s): Banks | Germany | Austria | Productivity | Economic models

Author's Keyword(s): Banks | efficiency | Germany | Austria | data envelopment analysis
 
English
Publication Date: August 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1402004 Pages: 23
Price:
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