Universal Banks, Ownership and Efficiency: A Stochastic Frontier Analysis of the German Banking Market

Yener Altunbas, Lynne Evans and Philip Molyneux ()

Chapter Chapter 8 in The Recent Evolution of Financial Systems, 1997, pp 141-156 from Palgrave Macmillan

Abstract: Abstract Within Western Europe the structure of the banking industry is changing rapidly, and one motivation for these changes is a drive for greater efficiency. However, whilst scale and scope efficiencies have been fairly extensively studied both in the US and the European contexts, surprisingly little attention has been paid to measuring what appears to be an important source of inefficiency — X-inefficiency — particularly in the European context1. This paper starts to redress this imbalance by measuring deviations from the efficient cost frontier for specific bank types and organisational forms in the German market. Moreover, the paper extends the literature on the merits and demerits of universal banking systems by focusing on the technical efficiency of banks operating under these systems.

Keywords: Input Price; Central Organisation; Saving Bank; Technical Inefficiency; Stochastic Frontier Analysis (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-14192-0_8

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DOI: 10.1007/978-1-349-14192-0_8

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