The Performance of Universal Banks: Evidence from Switzerland
Bertrand Rime () and
Kevin Stiroh ()
Additional contact information
Bertrand Rime: Swiss National Bank, http://www.snb.ch
No 01.03, Working Papers from Swiss National Bank, Study Center Gerzensee
This paper examines the production structure of Swiss banks in the period 1996-99. Using a variety of output specifications, we find evidence of large relative inefficiencies across Swiss banks. The results show the importance of accounting for the broad range of activities that universal banks undertake, e.g., failure to account for off-balance sheet items, trading, and brokerage and portfolio management activities leads profit efficiency to be dramatically understated. We find evidence of economies of scale for small and mid-size banks, but little evidence that significant scale economies remain for the very largest banks. Finally, evidence on scope economies is weak for the largest banks that are involved in a wide variety of activities. These results suggest few obvious benefits from the trend toward larger universal banks.
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.szgerzensee.ch/fileadmin/Dateien_Anwend ... g_papers/wp-0103.pdf Full text (application/pdf)
Journal Article: The performance of universal banks: Evidence from Switzerland (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:szg:worpap:0103
Ordering information: This working paper can be ordered from
Studienzentrum Gerzensee, Postfach 21, 3115 Gerzensee
The price is Free.
Access Statistics for this paper
More papers in Working Papers from Swiss National Bank, Study Center Gerzensee
Address: Studienzentrum Gerzensee, Postfach 21, 3115 Gerzensee
Series data maintained by library ().