The contribution of product mix versus efficiency and technical change in US banking

Gabriel Asaftei

Journal of Banking & Finance, 2008, vol. 32, issue 11, 2336-2345

Abstract: Similar to a Du Pont analysis, this paper divides the changes in returns on assets of US commercial banks for the period from 2000 to 2005 into conventional measures of bank performance. The contribution of product mix is significant and offsets losses from technical change and operating efficiency. Banks respond to changes in the business environment by switching towards more lucrative traditional and nontraditional products. Large banks are found to benefit more than community banks from the switch to an optimal output portfolio mix including new products spawned by recent financial innovations and deregulation.

Keywords: Commercial; banks; Product; mix; Productivity; Efficiency; DEA (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378-4266(08)00005-8
Full text for ScienceDirect subscribers only

Related works:
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:eee:jbfina:v:32:y:2008:i:11:p:2336-2345

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().