EFFECTS OF FINANCIAL CAPITAL ON COLOMBIAN BANKING EFFICIENCY

Dairo Estrada () and Poldy Osorio

No 2432, Borradores de Economia from Banco de la Republica

Abstract: In this paper we discuss cost and pro�t e�ciency for a sample of �nancial institutions on the Colombian �nancial market in the period 1989-2003, using stochastic frontier e�ciency analysis. During the pe- riod, the cost e�cient frontier deteriorates, but pro�t e�cient frontier is relatively stable. We found signi�cant di�erence when we compare the e�ciency scores between types of �nancial intermediaries. Addi- tionally, our analysis show that the scores for pro�t and cost e�ciency have di�erent distribution. We found big di�erences between pro�t and cost e�ciency among the di�erent type banks. This is evidence in favor of some banks behaving collusively and capturing oligopoly rents.

Keywords: Frontier (search for similar items in EconPapers)
Pages: 33
Date: 2004-06-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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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:col:000094:002432

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