 A three-phase comparative efficiency analysis of US and EU banksYiannis Anagnostopoulos, Kjetil A. Husa and Emmanouil Noikokyris International Review of Economics & Finance, 2022, vol. 81, issue C, 113-127 Abstract: We examine the efficiency differences between EU and U.S banks over 2000-2018. European banks are lagging behind the U.S in terms of technical efficiency both before and after the crisis. European banks lag in terms of efficiency yet the European sector has actually grown by 16% since the period prior to the crisis, with the U.S posting a more modest 6% increase in efficiency. Our results are robust and further backed by the Tobit and Differences-in-Differences estimations with the overall efficiency difference between the two sets being the intensity of their transvariation. Larger banks achieve higher technical efficiency by increasing their credit risk while smaller banks by reducing their risk exposure further exacerbating the too-big-tofail divide. Our results are of interest to investors, banking practitioners and regulators since the lack of common regulatory standards between EU/US banks could affect both the competitiveness and the stability of the financial system. Keywords: Bank efficiency; US banks; EU banks; Banking performance; Risk regulation; Banking regulation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:81:y:2022:i:c:p:113-127 DOI: 10.1016/j.iref.2022.04.009 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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