Financial restructuring, crisis, and productivity growth in bank branches: evidence from a large commercial Spanish bank

Idaira Cabrera-Suárez, Jorge V. Pérez-Rodríguez and Simon Sosvilla-Rivero
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Idaira Cabrera-Suárez: University of Las Palmas de Gran Canaria
Jorge V. Pérez-Rodríguez: University of Las Palmas de Gran Canaria

International Economics and Economic Policy, 2025, vol. 22, issue 3, No 1, 23 pages

Abstract: Abstract We analyse the impact of financial restructuring and economic crises on the evolution of productivity growth within bank branches. We apply the DEA-Malmquist framework for this analysis, utilizing both production and profit approaches. The study is based on data derived from the annual balance sheets of a major Spanish commercial bank for 2011–2014, encompassing the bailout of the Spanish banking system and the second economic downturn in Spain. The key findings are as follows: Firstly, despite severe adjustments and challenging economic conditions, branch productivity exhibited growth across the entire sample period. Secondly, productivity changes were predominantly driven by technological advancements rather than efficiency improvements, underscoring the bank’s notable role in fostering innovation during this time. Thirdly, a decline in the rate of productivity growth and its components was observed, along with an increased number of branches reporting negative changes, particularly among non-super-efficient branches.

Keywords: Bank branches; Total factor productivity index; Catch-up; Technological change; Order-α; DEA-Malmquist-based outliers (search for similar items in EconPapers)
JEL-codes: C02 C44 C61 D24 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10368-025-00661-z

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