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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