Is there a single frontier in a single European banking market?

J.W.B. Bos and Heiko Schmiedel ()
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Heiko Schmiedel: European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany., http://www.ecb.europa.eu/home/html/index.en.html

No 701, Working Paper Series from European Central Bank

Abstract: This paper attempts to estimate comparable efficiency scores for European banks operating in the Single Market in the EU. Using a data set of more than 5000 large commercial banks from all major European banking markets over the period 1993-2004, the application of meta-frontiers enables us to assess the existence of a single and integrated European banking market. We find evidence in favor of a single European banking market characterized by cost and profit meta-frontiers. However, compared to the meta-frontier estimations, pooled frontier estimations tend to underestimate efficiency levels and correlate poorly with country-specific frontier efficiency ranks. JEL Classification: G21, L11, L22, L23.

Keywords: X-efficiency; stochastic frontiers; banking; meta-frontiers; technology gap ratios. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-com and nep-eff
Date: 2006-12
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Related works:
Journal Article: Is there a single frontier in a single European banking market? (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:ecb:ecbwps:20060701

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