Effects of Financial Capital on Colombian Banking Efficiency

Dairo Estrada () and Poldy Osorio ()

Borradores de Economia from Banco de la Republica de Colombia

Abstract: In this paper we discuss cost and profit efficiency for a sample of financial institutions on the Colombian financial market in the period 1989-2003, using stochastic frontier efficiency analysis. During the period, the cost efficient frontier deteriorates, but profit efficient frontier is relatively stable. We found significant difference when we compare the efficiency scores between types of financial intermediaries. Additionally, our analysis show that the scores for profit and cost efficiency have different distribution. We found big differences between profit and cost efficiency among the different type banks. This is evidence in favor of some banks behaving collusively and capturing oligopoly rents.

Keywords: Frontier; Effficiency; Cost; Profit; Financial Capital (search for similar items in EconPapers)
JEL-codes: C23 D24 G21 L11 (search for similar items in EconPapers)
Date: 2004-06
New Economics Papers: this item is included in nep-fin
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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https://doi.org/10.32468/be.292 (application/pdf)

Related works:
Journal Article: Effects of Financial Capital on Colombian Banking Efficiency (2004)
Journal Article: EFFECTS OF FINANCIAL CAPITAL ON COLOMBIAN BANKING EFFICIENCY (2004)
Working Paper: EFFECTS OF FINANCIAL CAPITAL ON COLOMBIAN BANKING EFFICIENCY (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:292

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