Efficiency in banking: theory, practice, and evidence

Joseph Hughes and Loretta Mester

No 08-1, Working Papers from Federal Reserve Bank of Philadelphia

Abstract: Great strides have been made in the theory of bank technology in terms of explaining banks? comparative advantage in producing informationally intensive assets and financial services and in diversifying or offsetting a variety of risks. Great strides have also been made in explaining sub-par managerial performance in terms of agency theory and in applying these theories to analyze the particular environment of banking. In recent years, the empirical modeling of bank technology and the measurement of bank performance have begun to incorporate these theoretical developments and yield interesting insights that reflect the unique nature and role of banking in modern economies. This paper gives an overview of two general empirical approaches to measuring bank performance and discusses some of the applications of these approaches found in the literature.

Keywords: Banks; and; banking; -; Research (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-ban, nep-cba and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45)

Downloads: (external link)
https://www.philadelphiafed.org/-/media/frbp/asset ... pers/2008/wp08-1.pdf (application/pdf)

Related works:
Working Paper: Efficiency in Banking: Theory, Practice, and Evidence (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpwp:08-1

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Bibliographic data for series maintained by Beth Paul ().