A Survey of Empirical Literature on Bank Efficiency
Sunil Kumar and
Rachita Gulati ()
Additional contact information
Sunil Kumar: South Asian University
Chapter Chapter 4 in Deregulation and Efficiency of Indian Banks, 2014, pp 119-165 from Springer
Abstract This chapter presents a survey of empirical literature on bank efficiency. Four key research areas have been identified where most of the research efforts have been devoted in last two decades. These research areas are (i) impact of financial deregulation on bank efficiency, (ii) bank efficiency across ownership types, (iii) cross-country differences in bank efficiency, and (iv) impact of mergers and acquisitions on bank efficiency. In addition, two prominent research issues in the banking efficiency literature have also been discussed in this chapter. The first issue relates with the selection and specification of inputs and outputs in a study on the subject matter. The second issue is on the selection of appropriate frontier efficiency technique to measure bank efficiency. Regarding the first issue, we note that though both intermediation and production approaches are not perfect to model the production process of banking firms, but the former dominates the latter in the empirical applications because it is better suited to capture the decisions taken to minimize the cost of the financing mix. On the second issue, we note that a bank’s efficiency score can differ completely due to the measurement technique, and there is virtually no consensus on the preferred estimation method of bank efficiency.
Keywords: Data Envelopment Analysis; Private Bank; Foreign Bank; Stochastic Frontier Analysis; Free Disposal Hull (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-81-322-1545-5_4
Ordering information: This item can be ordered from
Access Statistics for this chapter
More chapters in India Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().