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Effects of Financial Capital on Colombian Banking Efficiency

Dairo Estrada () and Poldy Osorio ()

Revista ESPE - Ensayos sobre Política Económica, 2004, vol. 22, issue 47, No 47, 162-201

Abstract: In this paper we discuss cost and profit efficiency on the Colombian financial market in the period 1989-2003, using stochastic frontier efficiency analysis. During the period, the cost efficient frontier deteriorates, but profit efficient frontier is relatively stable. We found significant difference when we compare the efficiency scores among different types of financial intermediaries. Additionally, our analysis shows that the scores for profit and cost efficiency have different distributions. Also, we found big differences between profit and cost efficiency among the different type of banks. This is evidence in favor of the existence of collusive behavior of some banks, which allows them to capture oligopoly rents.

Keywords: frontier; efficiency; cost; profit; financial capital. (search for similar items in EconPapers)
JEL-codes: C23 D24 G21 L11 (search for similar items in EconPapers)
Date: 2004
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https://repositorio.banrep.gov.co/bitstream/handle/20.500.12134/3269/?sequence=1

Related works:
Journal Article: EFFECTS OF FINANCIAL CAPITAL ON COLOMBIAN BANKING EFFICIENCY (2004) Downloads
Working Paper: Effects of Financial Capital on Colombian Banking Efficiency (2004) Downloads
Working Paper: EFFECTS OF FINANCIAL CAPITAL ON COLOMBIAN BANKING EFFICIENCY (2004) Downloads
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